Riyadh – Mubasher: Saudi Telecom Company (STC) posted an 8% increase in net income as a result of the conversion to the third phase of international financial reporting standards (IFRS).
The company announced that it achieved SAR 336 million, due to different accounting treatment of services concession agreement at one of the group companies, according to a bourse filing on Monday.
“This agreement are treated and classified as fixed assets by Saudi Organization for Certified Public Accountants (SOCPA); however, the IFRS treated and classified this agreement as intangible assets,” the statement added.
STC noted that as a result of the aforementioned, expenses decreased by SAR 175 million, in addition to lower provision for end of service by SAR 67 million.
The Saudi-listed company stated that net shareholders’ equity will fall by SAR 32 million, with re-classify debit balance of translation of foreign financial statement by SAR 2.57 billion and other reserves by SAR 836 million, through the retained earnings balance.
The firm confirmed its readiness in the application of IFRS and the preparation of its financial statements starting from the first quarter of 2017 and during the regular period specified.
STC posted a net profit of SAR 2.15 billion in Q4-16, 10.26% up from SAR 1.95 billion in Q4-15.
