The Saudi Organization for Chartered and Professional Accountants (SOCPA), represented by its Accounting Standards Board, has adopted the International Accounting Standards Board's IFRS 18, which replaces International Accounting Standard (IAS) 1.
This adoption involves significantly reviewing and developing parts of the standard while maintaining certain presentation and disclosure requirements and transferring other requirements to relevant International Financial Reporting Standards (such as IAS 8, which has been renamed "Basis of Preparation of Financial Statements").
The International Accounting Standards Board's focus in issuing IFRS 18 was primarily on developing presentation and disclosure requirements for the following matters: statement of financial performance (primary and subtotals), principles of aggregation and disaggregation, and management-determined performance measures.
In accordance with SOCPA's Accounting Standards Board regulations, the Board implemented standard adoption procedures, which included preparing a detailed study of the standard, presenting the standard with its translation and the Board's initial recommendation for adoption to the public, and holding a roundtable meeting. Through these procedures, the Board decided on 25-06-1446H (corresponding to 26-12-2024G) to adopt IFRS 18 and its subsequent updates to other standards in the Kingdom, while allowing early adoption. The Board also approved the transfer of additional disclosures previously mandated by SOCPA for IAS 1 to IFRS 18, after aligning them with the new standard's paragraphs.
To view IFRS 18, click
here.
To view a summary of public consultation procedures regarding the adoption of IFRS 18 and its related study, click
here.