SOCPA holds a round table meeting to discuss the draft financial report criteria for enterprises entering into bankruptcy procedures or voluntary or judicial liquidation.
As part of procedures for adopting financial report standards for enterprises that enter into a bankruptcy procedures or optional or judicial liquidation, a round table was held with the participation of bankruptcy trustees registered with the bankruptcy committee, and relevant supervisory bodies, which included the Ministry of Commerce, the Capital Market Authority, the Saudi Arabian Monetary Authority, and Commercial Court. SOCPA held the meeting virtually on 26 November 2020. The meeting was held to discuss the draft standards and receive feedback from interested and concerned parties.
The meeting was launched by the Chairman of the Accounting Standards Committee, Fahad bin Mohammed Al-Taimi, whereby he stressed the importance of issuing such standards in light of lack of such procedures and not addressed by international standards, especially after the issuance of the Law of Bankruptcy which introduced a number of procedures ranging from preventive settlement, financial reorganization, and liquidation.
Draft standards were demonstrated which included two criterias; the first discusses the requirements for the preparation of financial statements on a liquidation basis, and includes principles and requirements for recognition, measurement, presentation, and disclosure, and the second discusses additional disclosures in financial statements of enterprises that apply the procedure of preventive settlement or the procedure of financial reorganization.
Further discussion continued with meeting participants who provided their remarks on the matter; the meeting continued for more than four hours.