Asas Makeen adopts fair value model to assess investment properties

Asas Makeen says the move followed a recommendation from the audit committee and will align with international accounting standards applied in Saudi Arabia

Asas Makeen Real Estate Development and Investment Co.’s board approved today, Sept. 25, the adoption of a fair value model for measuring investment properties, following a recommendation from the audit committee and in line with international accounting standards applied in Saudi Arabia.

The company said in a Tadawul filing that adopting the policy is expected to add about SAR 50 million to net assets, with the actual impact to be determined through property valuations in the 2024 income statement.

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Asas Makeen noted the relevant impact will begin to appear in the 2025 financial statements, adding that the new accounting policy will not generate cash inflows for the company.