Further to the announcement made on (Tadawul) on December 01, 2016 regarding the developments on conversion plan to the International Financial Reporting Standards (IFRS), The Company is pleased to announce the following:-
1) The first and second phases of conversion plan to the International Financial Reporting Standards have been completed.
2) The Opening IFRS consolidated statement of financial position as at 1/1/2016 (managerial purposes) have been prepared in accordance with International Financial Reporting Standards
3) Following are the material impacts on the consolidated statement of financial position as at 1/1/2016:-
a) Applying IAS 19 (Employee Benefits), resulted in increasing the Provision for employees -end - of service benefits by SAR 3.3 million, according to the actuarial studies to determine the provision. On the other hand, retained earnings was reduced by the same amount in 01/01/2016.
b) Applying IFRS 10 (Consolidated Financial Statements), resulted in eliminating the financial statements of one subsidiary from the consolidated financial statements of the Group. And treat this investment in accordance with to IAS 28 (Investments in associates), because the criteria of consolidation stipulated in IFRS 10 are not fulfilled.
c) Applying IAS 40 (Investment Property), resulted in reclassifying some items of Investment Properties and of Property, plant and Equipment (P.P.E).
It is worthy to mention that the purpose of presenting the Opening Consolidated Statement of Financial Position as at 01/01/2016 in accordance with IFRS is to be a part of the conversion plan, and to be available as comparative figures in the Consolidated financial statements of the Company (group) in 2017 in consistent with the requirements of IAS 1 (Presentation of Financial Statements) and the requirements of the IFRS 1 (First-time Adoption of International Financial Reporting Standards).
4) There are no substantial obstacles that may affect the company's ability to prepare its financial statements in accordance with International Financial Reporting Standards.
5) The interim consolidated financial statements for the first and second quarters 2016 prepared in conformity with IFRS which were previously announced to be ready by 31/12/2016, were postponed due to major changes in the presentation and encountered with the closing of the year. These statements, together with the other quarters, will be ready before 30/4/2017.
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.