Riyadh – Mubasher: Saudi Industrial Services Co. (SISCO) said that the conversion to the international financial reporting standards (IFRS) resulted in a negative impact on equity.
Total negative impact is expected to be on equity attributable to SISCO shareholders are SAR 23.6 million reducing consolidated equity to SAR 948.4 million, according to a bourse filing.
The firm stated that due to the componentisation of fixed assets, the depreciation expense increased by SAR 10.6 million.
Moreover, net book value of fixed assets and value of investment in associate companies were reduced by SAR 0.3 million due to componentisation of fixed assets, the statement said.
Retained earnings were reduced by SAR 10.9 million, the company noted.
According to the actuarial valuation, there is increase in provision for end of service benefits by SAR 11.1 million and value of investment in associate companies is reduced by SAR 1.6 million due to actuarial valuation. Correspondingly, retained earnings are reduced by SAR 12.6 million, the statement added.
The company confirmed its readiness to prepare its financial statements for the first quarter of 2017 as per the IFRS.
SISCO reported a net profit of SAR 21.89 million for the fourth quarter of fiscal 2016, against a net profit of SAR 22 million for Q4-15, with a 0.62% slight decrease.
