SAUDI ARABIAN MINING COMPANY (MAADEN) ANNOUNCES PROGRESS IN THE THIRD PHASE OF ITS TRANSITION PLAN FOR THE IMPLEMENATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)
Further to the company announcement on Tadawul website on 29/01/1438H (corresponding to 30/10/2016G), Saudi Arabian Mining Company (Maaden) announces progress in the third 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 20/08/2016G:
1. New accounting policies were approved by the company Board of Directors on 2016/12/1.
2. As announced previously, the largest challenge faced by the Company in the transition process was the need to componentize the fixed assets of some of the Maaden Group companies given the scale and complexity of their operations. As previously announced, this has been completed.
3. The Company has prepared its opening balance sheet as at 1/1/ 2016 and first quarter 2016 financial statements in accordance with IFRS and these are currently under final review by the Company external auditors.
4. The Company currently expects the largest impact on its financial statements as a result of the IFRS transitioning process to come from the application of the impairment testing methodology required under IFRS to its Property, Plant & Equipment; this methodology differs from the impairment testing required under the SOCPA standards. The Company external auditors are currently completing a review of the Company impairment calculations. Any impairment will be charged to the Company retained earnings in its IFRS balance sheet as at 1/1/2016. A further announcement will be made following completion of the review.
5. There are no obstacles affecting the Company ability to implement the new standards.
6. The Company confirms its readiness to prepare its consolidated interim financial statements for the first quarter ending 31/3/2017 in compliance with IFRS and in line with the applicable regulatory reporting deadlines.
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