SOCPA participates in the first meeting of the Accounting Standards Advisory Forum (ASAF) of the Int

SOCPA participates in the first meeting of the Accounting Standards Advisory Forum held  via a videoconference link
 
The Saudi Organization for Chartered and Professional Accountants, represented by its Accounting Standards Board, participated in the first meeting of the Accounting Standards Advisory Forum of the International Accounting Standards Board, which was held via video call during the period March 24-25, 2025. The Organization was represented at that meeting by the Executive Director of Professional Standards, Dr. Abdul Rahman Al-Razeen.
The participants discussed a number of developments and draft international standards, including the International Board's draft to develop International Accounting Standard No. 28 regarding the equity method, in order to solve a number of application problems noted by the International Board, such as purchasing an additional stake in the invested company and proving the gains from dealing with associate companies. Participants made a number of suggestions regarding the draft. The organization's representative suggested that a number of topics be included in the development draft, such as the definition of significant impact, and the extent to which both the investing entity and the invested entity have the same control.
Among the topics discussed by the participants was the International Board's research draft on intangible assets, mainly the draft's directions, and the participants presented a number of suggestions to help the International Board guide its research efforts. Among the suggestions presented by the Organization's representative was the need to reconsider how to account for internally developed intangible assets, especially those related to the use of technology, as they represent the main income-generating assets for a number of companies, and therefore the continued failure to prove such assets may limit the fairness of presenting the financial statements of their financial position. He also suggested reconsidering the limitations on the use of the revaluation model for intangible assets.
Participants also discussed the International Board's draft to develop International Accounting Standard No. 32 regarding financial instruments that have Properties of property rights. The scope of the discussion was on the subject of presentation and disclosure, and did not address measurement issues at this stage. Participants made a number of proposals regarding the draft.
Among the topics discussed by participants was the cash flow statement development draft. Participants made a number of suggestions regarding the draft. The Organization's representative suggested to the International Board that the draft include consideration of how to deal with digital currencies, given their widespread use. Among the suggestions made by the Organization's representative was to consider reclassifying the cash flow statement to reflect the classification adopted in International Financial Reporting Standard No. 18, thus increasing the coherence between the two statements and providing useful information to decision-makers regarding the entity's performance and cash flows resulting from various activities.
During the meeting, participants discussed the draft of post-application review of International Financial Reporting Standard No. 16, and participants made a number of suggestions regarding what the information request document could include to initiate the audit. The organization's representative emphasized the relevance of the topics suggested by the International Board, appreciating the inclusion of the issue of sale and leaseback among the audit topics. The organization had previously requested the International Board to reconsider these requirements, particularly with the International Standard Interpretations Committee issuing a number of decisions that require reconsideration in light of the lack of clarity regarding the standard's requirements.