Methanol Chemicals Company (Chemanol) announces that following the appointment of Messrs/ PwC (the external auditor for Company's accounts for 2016) to review the readiness of the Company to meet the requirements of the transition plan to the International Financial Reporting Standards (IFRS), and issue the financial statements for 2016 in accordance with the IFRS, the Company has re-updated its accounting policies and determined the significant impacts of such implementation by reducing the Shareholders' Equity by SAR 168 million detailed as follows:
1- Adjusting the value of the fixed assets taking into consideration the impact of the reevaluation which showed a decline in the net value of the said assets by around SAR 149 million.
2- Increasing the End of Service Benefits Provision by around SAR 12.6 million as a result of the actuarial valuation.
3- Reducing the balance of loans by SAR 6.4 million due to the measurement of loans by way of amortized cost.
It is worth mentioning that the Company is ready for the implementation of IFRS as of Q1 of the financial year 2017.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.