SABB discloses impact of IFRS 9 on shareholders' equity
13/05/2018 Argaam Special
ShareCopy to clipboard
The Saudi British Bank (SABB) has reported a reduction in its shareholders’ equity by SAR 1.65 billion in Q1 2018, as a result of the application of IFRS 9 standard.
Saudi-based banks applied the IFRS 9 accounting standard as of January 1, 2018, that requires banks to set aside provisions for credit impairment on anticipation of customer default, not when actual default happens.
The standard has a direct impact on banks' solvency positions and shareholders' equity.
Impact of IFRS (9) (SAR mln)
Closing balance (Dec. 31, 2017)
Expected credit losses
Reclassifications according to new standards
Opening balance (Jan. 1, 2018)
The table below tracks the changes in shareholders' equity following the enactment of the standard: