Riyadh - Mubasher: The Saudi Capital Market Authority (CMA) has announced obligating entities listed on the Nomu-Parallel Market to disclose their International Financial Reporting Standards (IFRS) Transition Progress.
The transition plan to adopt the International Financial Reporting Standards, was endorsed by the Saudi Organization for Certified Public Accountants (SOCPA), who had resolved for entities listed on the Parallel Market to implement the IFRS starting from 1 January 2018, according to the statement.
The CMA said that the Board of Commissioners resolution which obligates listed entities on the Parallel Market to disclose their IFRS transition progress on three phases.
The firsat phase will be from 1 July 2017 to 1 August 2017, in which the company will reveal whether an IFRS transition plan had been prepared, which should include as an example, the determination of the target date to approve the accounting policies.
Where a plan had not been prepared, the listed entity should determine the target date for preparing the plan. Such target dates should be appropriate enough to assure the transition to the IFRS before 1 January 2018.
Phase two will be between 1 September 2017 and 1 October 2017, through which the Nomu-listed companied should disclose on the Tadawul web site, the phase one disclosures updates, as well as whether the accounting policies necessary for the preparation of IFRS financial statements had been approved.
Where the entity is ready to implement the IFRS, it would also be exempted from the above disclosures, stipulating that the entity should disclose that it has readily available IFRS financial statements and the significant effects as a result of implementing the IFRS.
Finally, the third and final phase will be during December 2017, when companies will release updates regarding the first two phases, as well as following; the audited opening IFRS statement of financial position as of the IFRS transition date that is prepared as part of the IFRS transition project.
“Whether an IFRS financial statements had been prepared and the periods, over which such financial statements had been prepared.”
“The significant effects on the entity as a result of implementing the IFRS, the moment the entity can determine such effects. Where the effects of implementing the IFRS is immaterial, the listed entity should disclose so.”
“Any hindrances that might affect the listed entity ability to prepare its IFRS financial statements.”
“The extent of the listed entity's readiness to prepare its IFRS financial statements for 2018 first quarter within the applicable regulatory period.”
The aforementioned board resolution also indicated that the CMA might request the listed entities on Parallel Market to make any additional disclosures the Authority finds to be necessary in relation to the IFRS transition plan, the statement concluded.
