With reference to the CMA announcement on 21/08/2016 enforcing all listed companies to disclose their updates over the International Financial Reporting Standards (IFRS) convergence. Asharqiyah Development Company announces the following:
1-The developments related to what has been announced in the first and second phases is in the Board of Directors 28/01/2017 approval ofthe accounting policies necessary for the IFRS convergence in cooperation with the Associated Accountants office.
2-The financials for the EY2016 will be produced in accordance with the IFRS standards once the external auditor signs off their reports within the current month of February. The company therefore will submit its Q1 2017 financials to be in accordance with IFRS.
3-Assessment of changes resulting from the IFRS convergence is still ongoing and it is worth mentioning that there are no adequate details to be reported at the current stage and will provide additional information in this regard in the future.
4-Challenges facing the company in availing thesufficient liquidity necessary to ramp up the completion of the IFRS convergence before the deadlines enforced by the CMA. The company and the Associated Accountants however are working hard to meet the imposed deadlines.
5-The company should be ready to prepare its financial statements for Q1 2017 and submit them in accordance with the IFRSwithin the standardtime period.
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.