Reference to its announcement on Tadawul dated 27/10/2016 relating to the stages of implementation of International Financial Reporting Standards (IFRS), the company would like to update as the follows:
1.The Board has approved on 30/11/2016 the accounting policies according to IFRS.
2.The Q1 2016 set of financial statements have been prepared in accordance with International Financial Reporting Standards.
3.The financial statement prepared under IFRS contained the following differences as of the transitional date which is 1 January 2016:
a)Net decrease by SAR 12 million in the value of the goodwill as a result of acquisition accounting under IFRS impacting the total assets.
b)Increase in the end of service provisions by SAR 5 million impacting total liabilities.
c)The above mentioned (a) & (b) impacted the retained earnings by SAR 10 million and non-controlling interest by SAR 7 million.
4.There is no significant effect on the financial statements as a result of applying the IFRS.
5.The company did not face any difficulties in preparing the financial statements under IFRS.
6.Accordingly, the company would like to confirm its readiness to start implementing IFRS in the first quarter of 2017 during the applicable regulatory deadline.