Pursuant to Company announcement on 25/01/1438H (corresponding to 26/10/2016) regarding Transition to International Financial Reporting Standards (IFRS) we are pleased to announce that the project is progressing as the following:
1.The accounting policies complied with IFRS has been approved by the board on 18 Jan 2017.
2.The consolidated balance sheet has been prepared (unaudited for management purpose) for the opening balances as of 1 Jan 2016 to be in compliance with IFRS.
3.The consolidated financial statements have been prepared (unaudited for management purpose) for the first and second quarter 2016 in compliance with IFRS and the Company is working on the third and fourth quarter as well as with the yearly financial statements to be ready before the end of first quarter 2017.
4.The Company is very well placed to prepare and present the financial statements for the first quarter of 2017 as per IFRS within the applicable regulatory timelines.
5.TASNEE did not face any difficulties in the transition process to word implementation of IFRS.
6.There is insignificant impact on the opening balance of the shareholders equity as of 1 Jan 2016 with some increases and decreases as a result of IFRS1 (first time adoption) including certain elements of depreciation on plant and equipment, and capitalization of spare parts based on IAS16 (plant property and equipment) and employee benefits provision under IAS19 (employee benefits).
Considering the impacts of applying IFRS10 (consolidated financial statements) IFRS11 (joint agreements) certain subsidiaries will not be consolidated and will get treated as a joint ventures (IAS28) as per equity method since we cannot exercise significant control over investee. Further developments if any will be announced later.
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.