SIPCHEM ANNOUNCES THE TRANSITION PLAN FOR IMPLEMENTATION OF IFRS
Tuesday, August 30, 2016
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Saudi International Petrochemical Company (Sipchem) announces that its International Financial Reporting Standards (IFRS) implementation project is underway supporting the directives issued by Saudi Organization for Certified Public Accountants (SOCPA) and Capital Market Authority (CMA) to ensure compliance with IFRS and the disclosures required for listed companies starting from the first quarter 2017, the plan is as follows:
1- Sipchem has prepared a transition plan and has an internal team in place to manage the transition. The IFRS policies and procedures are being advanced and aligned with Sipchem and its affiliates and relevant departments.
2- Sipchem appointed Ernst & Young (EY) as its IFRS external consultant in 4Q 2015 to assist with the transition and in particular to identify the changes required to timely meet IFRS standards. Some of the IFRS changes require significant planning and execution efforts to support adoption. The issues identified to date have been incorporated in the transition plan adopted to support the timely role out of the conversion.
The company is in the process of preparing the opening balance sheet on the date of transition and the consolidated restated financial statements for the quarter ended 31 March 2016. The internal deadline to restate the first quarter 2016 financial statements is November 2016. Further developments will be announced in accordance with the CMA directive.