With reference to the circular issued by the Capital Market Authority , dated 21
August 2016, and with reference to the previous announcements made by the
Company on the Tadawul website on 30 August 2016 and 30 October 2016
regarding phase I and phase II of the IFRS transition plan, the Company
updates on the transition plan as per the phase 3 disclosure requirements as
1. Accounting policies in line with IFRS have been approved by the Board of
Directors on 30 November 2016.
2. The first set of unaudited IFRS based financial statements for Q1.2016 for
management purposes have been prepared and also included the opening
IFRS financial position as of 1-1- 2016.
3. The major impact on the IFRS based financial statements, resulted from the
adoption of IFRS, was principally decrease in retained earnings as of 1-1-
2016 by around SR 73 million as a result of implementation of IAS17, which
requires recording of rent expense based on the straight-line method over the
entire period of the lease contract and starting from the date of signing the
4. There are no constraints that may affect the Company ability to prepare its
financial statements in accordance with IFRS.
5. The Company confirms its readiness to prepare its IFRS financial
statements for 2017 first quarter within the applicable regulatory period.