Aug 31, 2016
Saudi Arabian Mining Company (Maaden) announces progress in the first phase of its plan to transition to financial reporting in compliance with International Financial Reporting Standards (IFRS) and provides the following information in line with the CMA instructions issued on 20/08/2016:
1) The company adopted a conversion plan in October 2015. This plan includes the adoption of new accounting policies which are expected to be approved in December 2016.
2) The company appointed an experienced external consultant in June 2015 to assist with the transition. This assistance has included gap analysis, revision of accounting policies, assessing the changes required in the company accounting systems, and training.
3) An internal project management team with a project manager was appointed to manage the transition.
4) The largest challenge faced by the company in the transition process has been the need to componentize the fixed assets of some of the Maaden Group companies given the scale and complexity of their operations. However, additional external consultants were retained to undertake this work and this is being successfully managed and is expected to be completed in September 2016.
5) The company expects to prepare its opening balance sheet as at January 1, 2016 and first quarter 2016 financial statements in accordance with IFRS, by October 31, 2016, and be reported for comparison purposes in the company financial statements for the first quarter 2017.