Tuesday, 31st January 2017

Saudi Cement Company announces the progress of its phases of the transition plan to adopt International Financial Reporting Standards (IFRS) (Third Phase).

1438/05/03 31/01/2017 08:16:43

Further to the company’s announcement dated 26/01/1438 corresponding to 27/10/2016, regarding the phases of the conversion plan to International Financial Reporting Standards (IFRS), the company announces the followings :
1.As announced in the second phase, the Board of Directors has approved the updated accounting policies for the preparation of the financial statements in accordance with IFRS. The appointed consultant, MS / Price Waterhouse Cooper, has prepared these polices, then reviewed by the concerned executive management, and finally approved by the Board of Directors on 27-December-2016.
2.The company has prepared the opening balances for the year 2016 in accordance with International Financial Reporting Standards (IFRS). The quarterly financial statements for 2016 are under process and are expected to be completed before 31-3-2017.
3.There are no significant financial impact on opening balance of shareholders ‘ equity as at the date of transition to International Financial Reporting Standards (IFRS). The transition has impacted the way of measurement and presentation of some items of the financial statements and its related disclosure in the financial statements such as componentization of fixed assets and reclassification of some of the spare parts inventory. In addition, the cost of imported clinker was treated on the bases of homogeneous cost. Furthermore, the employee benefits have also been recalculated applying actuarial valuation method for accounting for long-term benefits as required by IAS 19.
4.The company has not encountered any difficulties that may affect the company’s ability to prepare its financial statements in accordance with international financial reporting standards.
5.The company assure its readiness to prepare its financial statements in accordance with the international financial reporting standards for the first quarter of 2017 and during the applicable regulatory deadline.