1- Savola Group (Savola) has developed a comprehensive IFRS Convergence plan ('the Plan') - Under the Group's Audit Committee supervision - for the successful implementation of transition plan to adopt the International Financial Reporting Standards ('IFRS') as endorsed by SOCPA. Key features of the Plan includes:
- Detailed Businesswise Impact assessment including IT systems;
- Preparation of IFRS 1 'First-time adoption of International Financial Reporting Standards' position paper - including the policy choices under IFRS;
- Conduct IFRS awareness sessions/workshops;
- Preparation of Illustrative Financial Statements under IFRS;
- Identification of gap adjustments on date of transition (i.e. 1 January 2016);
- Preparation of Opening Balance sheet as at 1 January 2016; and
- Preparation of quarterly IFRS financial statements- 2016 (comparative to 2017 IFRS Financial Statements)
2- Savola engaged a professional firm; KPMG Al Fozan and Partners (formerly KPMG Al Fozan and Al Sadhan), as the IFRS consultants to develop a road map for the successful implementation of the convergence project, while also tasked to execute the transition phases as per the Plan.
3- Savola has formulated a team responsible for the successful implementation of the Plan. The team worked closely with the consultants and is focused on completing the tasks included in the IFRS convergence plan as mentioned in point 1 above.
4- Overall, Savola has not faced significant difficulties in the convergence process, however, considering Savola's presence in different geographies, educating the staff about the required process changes including resultant changes from local accounting standards to the applicable IFRSs is the most challenging aspect of the transition.
5- The first set of management financial statements under IFRS for the 3 months period ended 31 March 2016 along with the transition balance sheet as at 1 January 2016 is under preparation and shall be completed during Q4 2016.
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