Further to the announcement published on Tadawul on 31 August 2016 and 30 October 2016 regarding the transition plan for the implementation of International Financial Reporting Standards (IFRS), ADVANCED is pleased to announce the progress as per the Phase III disclosure requirements as follows:
1. The Company has completed the preparation of the accounting policies according to IFRS which has been approved by the Board of Directors on 22 November 2016 and is applicable from 1 January 2017.
2. The opening consolidated statement of financial position at 1 January 2016 has been prepared in accordance with IFRS. The preparation of consolidated financial statements for Q1 2016 and year ended 31 December 2016 in accordance with IFRS is in progress and will be completed during the Q1 2017.
3. There are no significant impact on the Company consolidated financial statements as a result of the implementation of IFRS. The transition has impacted the way of measurement, valuation, presentation and disclosure for certain items such as employees end-of-service benefits applying actuarial valuation method, componentization of significant components of fixed assets and assessment of their useful lives, charging of administrative expenses previously capitalized and recognition of impairment losses on available for sales investments under IFRS.
4. There are no constraints affecting the Company ability to prepare its financial statements in accordance with IFRS.
5. The Company confirms its readiness in the application of IFRS and the preparation of its financial statements starting from the first quarter of 2017 in line with the applicable regulatory deadlines.
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.