The Saudi Organization for Certified Public Accountants has set next Tuesday, January 31, 2017, as the deadline for Saudi companies to disclose their compliance with the transition to International Financial Reporting Standards (IFRS) in accordance with Phase 3, which focuses on clarifying the following:

• Updates regarding what was disclosed in the first and second phases.
• Whether financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and the periods for which such statements were prepared; if not, the reasons must be stated, and the expected date for preparing the said financial statements must be specified.
• The material effects on the company resulting from the application of International Financial Reporting Standards as soon as the company is able to estimate such effects, or a disclosure that there is no material effect.
• Any obstacles that may affect the company’s ability to prepare its financial statements in accordance with international standards.

The extent to which the company is prepared to prepare its financial statements in accordance with International Financial Reporting Standards for the first quarter of 2017 within the specified statutory period

The Capital Market Authority has previously confirmed that this decision aims to verify that companies listed on the financial market prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) prior to their due date, and to assess their compliance with the transition plan to IFRS.

The Capital Market Authority has also decided to extend the deadline for announcing interim financial statements to 30 days from the end of the financial period, and to three months for annual financial statements, effective January 1, 2017, as listed companies may face difficulties and challenges in transitioning to the application of International Financial Reporting Standards.