Alkathiri holding Company announces the stages of the transition plan for the International Financial Reporting Standards(IFRS )
With reference to the Capital Market Authority’s circular on August 21, 2016 regarding the disclosure of the transition to International Financial Reporting Standards adopted by the Capital Market Authority of Saudi Arabia and the Saudi Organization for Certified Public Accountants, we present to you below the elements of the transition plan to the International Financial Reporting Standards adopted by Alkathiri Holding Company as follows:
1- Forming a team of qualified individuals responsible for the financial reports of the company to prepare a proposal for the transition plan to the International Financial Reporting Standards and submit it to the audit committee and the chief executive for approval in August, 2017 and take the suitable measures to implement the elements of the transition plan and document the procedures.
2 – Studying and adopting the transition plan by the Audit Committee and the Chief Executive in the first week of September, 2017.
3 – The company has not faced great difficulties in the process of transition to the application of the International Financial Reporting Standards until this stage.
4. Communicating with the auditor or the consulting offices about the results reached, including selecting alternatives, methods of application, and the team’s understanding of measurement requirements and disclosure.
5. Preparing the statement of financial position on December 31st, 2017 in accordance with International Financial Reporting Standards as an opening financial center on the date of transition for it to be included subsequently as comparative information with the first financial statements in 2018 and consulting with the auditor on the basis of preparation and methods of application of International Financial Reporting Standards.
The transition plan has already been adopted and the team has started implementing it. The management believes that it will take the necessary measures to ensure that it is prepared to apply the International Financial Reporting Standards to the financial statements issued by the company for the financial periods beginning January 1st, 2018