ADDENDUM ANNOUNCEMENT FROM SAUDI ARABIAN MINING COMPANY RELATED TO ITS TRANSITION PLAN FOR THE IMPLEMENATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)
Further to the company announcement published on Tadawul website on 04/05/1438H (corresponding to 01/02/2017G), Saudi Arabian Mining Company (Maaden) announces the impact on its financial statements as a result of the IFRS transitioning process.
As previously disclosed, the Company expects the most significant impact on its financial statements as a result of the transition to IFRS will be as a result of applying the impairment testing methodology required under IFRS to its assets; this methodology is more conservative than the impairment testing required under the SOCPA standards. As a result the Company expects to recognize total impairments of SAR2.9BN in respect of its aluminium rolling business, and in respect of its investment in the jointly controlled entity Sahara Maaden Petrochemical Company (SAMAPCO). These impairments will impact the Company retained earnings as at January 1, 2016 and the full year 2016 IFRS compliant financial statements.
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