«The Ministry of Commerce Emphasizes the Importance of Companies Filing Financial Statements and Their Impact on Enhancing Business Efficiency and Investor Confidence

The Ministry of Commerce emphasized the importance of companies preparing and filing their financial statements, given its positive impact on enhancing administrative efficiency, increasing transparency, bolstering the confidence of investors, shareholders, creditors, and banks, and enabling regulatory bodies to perform their roles effectively. According to the Companies Law, the responsibility for preparing and filing financial statements rests with the company's chairman, the company's manager, the chairman of the board, or the board of directors (in the case of a simplified joint-stock company).

Everyone is obligated according to the company system.
The filing of financial statements is an obligation for all companies in accordance with the provisions of the Companies Law , as paragraph (2) of Article (17) states that “Financial statements must be prepared for the company at the end of each fiscal year in accordance with the accounting standards adopted in the Kingdom, and these statements must be filed in accordance with what is specified by the regulations within (six) months from the date of the end of the fiscal year, in accordance with the provisions contained in the Law.”
The ministry indicated that preparing and submitting financial statements contributes to improving the company’s administrative performance by evaluating its financial performance, enhancing control over its various departments, measuring operational efficiency, and supporting decision-making based on accurate financial indicators.

Compliance with financial statement preparation and filing also enhances investor and shareholder confidence by enabling them to assess profitability and return on investment, evaluate financial and operational risks, and compare different companies and investment opportunities. The obligation to file financial statements also benefits creditors and banks by allowing them to assess repayment capacity and liquidity levels, determine financing terms, and monitor compliance with loan and financing conditions.

Financial statements enable regulatory authorities to verify the extent to which companies comply with regulations and enhance investor protection and the economy.
The ministry has identified those responsible for preparing and submitting financial statements according to the company's legal entity. Companies can submit their financial statements electronically via the Qawaem platform: https://qawaem.bc.gov.sa .