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IFRS adoption in Kingdom of Saudi Arabia
December 2017
Contents
Disclaimer
This document provides a summary of our key observations on the IFRS adoption in KSA.
The contents of this document comprise information published by individual companies in Tadawul website. Our analysis is based on the completeness and accuracy of the facts and figures published on Tadawul website. Other than to the extent required for the purpose of this report, this information has not been independently verified.
The analysis made in this report are based on the published financial statements of the concerned companies for the first quarter under IFRS ended on 31 March 2017. We will not update our report for subsequent changes or modifications to laws, regulations and IFRS.
Introduction 3
Executive summary 5
Effects of IFRS adoption:
• Effects on retained earnings
• Effects on assets
• Effects on liabilities
7
Key IFRS 1 exemptions utilized 11
Early adoption of IFRS 9 and IFRS 15 14
Appendices 16
Introduction
01
IFRS adoption in KSAAll Rights Reserved — EY 4
About this report
Introduction
The International Accounting Standards Board (IASB) is now on track to achieve the vision of one global accounting standard. Adhering to the vision of IASB, the Saudi Organization for Certified Public Accountants (SOCPA) had decided to apply International Financial Reporting Standards as endorsed in Kingdom of Saudi Arabia (referred hereafter as IFRSs) to all listed and unlisted companies.
Mandatory dates of transition
Lis
ted
co
mp
an
ies
Date of transition to IFRS
1 Jan 2016
Comparative information Reporting date
31 Dec 2016 31 Dec 2017
Un
list
ed
co
mp
an
ies*
Unlisted companies have an option to early adopt along with listed companies
Date of transition to IFRS
1 Jan 2017
Comparative information Reporting date
31 Dec 2017 31 Dec 2018
*Unlisted companies not acting in fiduciary capacity can choose either to apply IFRS for SMEs as endorsed in Kingdom of Saudi Arabia or fullset of IFRS.
Based on the transition date decided by SOCPA, listed companies were required to publish their Q1 financial statements for FY17 in accordance with IFRS. As of 31 December 2016, there were 176 listed companies on Tadawul.
124
33
4123
Banking Diversified financials Insurance REIT Other Sectors
107Companies in ‘other sectors’ that had published Q1 results under IFRS
This report is an analysis of the IFRS adoption by the Kingdom of Saudi Arabia (KSA) based on the Q1 financial statements as of 31 March 2017, published on Tadawul by these 107 equity listed companies in fifteen (15) sectors (see Appendix I for detailed description of sectors). The analysis is extended further at the sector level as shown in Appendix VI.
16Q1 IFRS financial statements not available due to Hijri calendar or other than 31 December year end
Executive summary
02
IFRS adoption in KSAAll Rights Reserved — EY 6
Executive summary
By issuing the Q1 results in IFRS, the listed companies have successfully put their initial step in this transition. It is now time to evaluate the status of IFRS transition and its impact on the overall financial position of the company as well as different sectors based on the published financial statements.This report is evaluating the IFRS adoption in KSA based on the analysis of published financial statements of 107 companies under three focus areas and the major observations are as follows:
Effects of IFRS adoption
Retained earnings:
SAR18,116m (12.4%)
01
02
03
0405
Retained earnings decreased for all sectors except Media, Retailing and Utilities.
Materials sector had the highest decrease of SAR12,162m (31.6%).
There is a net increase in the value of asset by SAR2,986m.
The net increase in liabilities as a result of IFRS adoption is
SR17,615m.
Appendix VI illustrates certain sector-wise impact of IFRS adoption.
Major IFRS 1 exemptions utilized
48 Companies utilized the exemptions
Key exemptions utilized are:
• IFRS 3 (Business combinations)
• IAS 21 (Cumulative translation differences)
• IAS 23 (Borrowing costs)
• IFRIC 4 (Arrangements containing a lease)
Companies10 Companies07
Early adoption of IFRS 9 and IFRS 15
These companies belong to consumer durables and apparels, capital goods, energy, material, real estate, retailing and transportation sectors.
IFRS 9 IFRS 15
Effects of IFRS adoption
03• Effects on retained earnings
• Effects on assets
• Effects on liabilities
IFRS adoption in KSAAll Rights Reserved — EY 8
Effects of IFRS adoption
Retained earnings SAR18,116m at the date of transition
(2,591) (1,598) (1,009) (669)
773
(861)
Net impactSum of RE (IFRS)Sum of RE on date of transition (SOCPA)
The impact on retained earnings is primarily due to increased liabilities. There was a decrease in retained earnings for all, except media, retailing and utilities sectors. Material sector has the highest impact due to adjustments in Goodwill and PPE. Utilities sector has the highest net increase in retained earnings (SAR773m). IFRS adoption has an insignificant impact on the media, retailing and commercial and professional services sectors.
Asset 2,986m (App. III)
Liability (17,615m) (App. IV)
Other components of equity*
(3,487m)
*Adjustments to other components of equity (non-controlling interest, foreign currency translation reserve and other reserves)
35,000
–15,000
30,000
15,000
10,000
70,000
5,000
0
Capital goods UtilitiesMaterialFood andbeverageReal estate
Tele-communication Other sectors
Impact on retained earnings (SARm): App. II
(12,162)
IFRS adoption in KSAAll Rights Reserved — EY 9
(2,205)
(1,256)(531) (643)
Effects of IFRS adoption (contd)
The following table highlights the net effect on selective categories of assets (all sectors combined).
–3,500
–4,000
–8,500
–2,500
16,500
1.500
1.000
500
0
-500
–1,000
–1,500
–2,000
–3,000
693
(8,099)
15,028
Total adjustments
Other assets
Goodwill
Advances and prepayments
Investment in other companies
PPE
IFRS adoption had a net increase of SAR2,986m on the assets of the companies considered. Utilities sector had the highest net increase and materials sector had the highest net decrease.
SARm
1 PPE 13,371
2 Advances and prepayments 4,651
3 Investment properties 1,948
4 Investment in other companies (4,288)
5 Goodwill (3,131)
1. Utilities sector has a net increase of SAR16,205m in PPE whereas other sectors generally reported a decrease.
2. Utilities sector has the highest increase in assets of SAR4,974m. Other sectors generally had a decreasing effect in advances and prepayments.
3. Retailing (SAR692m), consumer services (SAR544m) and utilities (SAR539m) sectors had an increase on investment property whereas real estate sector noted a decrease by SAR873m.
4. Utilities (SAR1,965m), material (SAR1,326m) and telecommunication (SAR487m) are the mainly affected sectors of investment in other companies.
5. The entire adjustment in goodwill is related one material sector entity.
Real estateFood &
BeveragesMaterial
Tele-communication
Capital goodsOther sectors Utilities
Impact on assets (SARm) at the date of transition: see App. III for detailed analysis
IFRS adoption in KSAAll Rights Reserved — EY 10
Effects of IFRS adoption (contd)
IFRS adoption had increased the liabilities by SAR17,615m in the financial statements of the companies considered. Utilities sector had the highest net upward movement and real estate sector had the highest downward movement.
SARm
1 Government grants 46,091
2 Loans 9,015
3 Other liabilities 5,503
4 Employee benefits 5,090
5 Payables (49,998)
1. Utilities sector has an increase of SAR46,035m in government grants due to reclassification from long-term governmental payables of SAR42,346m of an entity.
2. Utilities sector has the highest impact of SAR8,683m along with telecommunication (SAR1,294m). Loans in material sector reduced by SAR1,042m.
3. Utilities sector marked the highest increase in other liabilities (SAR12,048m) whereas other sectors reported a reduction in general.
4. Majority of sectors marked an increase in employee benefits and material sector has a considerable increase by SAR3,738m.
5. Decrease in payables was mainly contributed by utilities sector (SAR53,372m).
3,500
1,500
1,000
500
0
–1,000
–53,500
46,500
2,500
–500
2,000
14,194
MaterialFood andbeverages
554
(149)
Real estate UtilitiesTele-communications
Other sectorsCapital goods
Total adjustment to liabilities
Payables
Other liabilities
Government grants
Employee benefits
Loans
Impact on liabilities (SARm) at the date of transition: see App. IV for detailed analysis
3,389
(709)
247 88
The following table highlights the net effect on different categories of liabilities (all sectors combined).
Major IFRS 1exemptions utilized
04
IFRS adoption in KSAAll Rights Reserved — EY 12
Major IFRS 1 exemptions utilized
48 companies used exemptions
IFRS 1 lists some optional exemptions which companies can use during their first time transition to IFRS. Forty-eight companies used these exemptions. One entity in telecommunication sector used the maximum number of exemptions (six).
Most of the companies had used exemption for IFRS 3 Business Combinations (33 companies).
Optional exemptions utilized
1
33
4
813
13
4
3
11 IFRS 2 (Share-based payments)
IFRS 3 (Business combinations)
IFRS 9 / IAS 39 (Financial instruments)
IAS 16 (Assets deemed cost)
IAS 21 (Cumulative translation differences)
IAS 23 (Borrowing costs)
IAS 28 (Group, subsidiary, associate and jointventure transition dates)
IFRIC 1 (Decommissioning liabilities)
IFRIC 4 (Arrangements containing a lease)
The numbers represent the number of companies using the respective exemptions
IFRS adoption in KSAAll Rights Reserved — EY 13
Major IFRS 1 exemptions utilized (contd)
IFRIC 4IAS 23IAS 21IAS 16 Other exemptionsIFRS 3
0
1
2
3
4
5
6
7
8
9
10
11
12
Consumer servicesCapital goods Other sectorsTelecommunicationMaterial
All sectors utilized the exemptions except the commercial and professional services sector. Materials sector utilized the maximum number of exemptions as an individual sector (28 exemptions by 15 companies). The exemptions for IFRS 3 (business combinations) was utilized by most of the companies and the least utilized exemption was IFRS 2 (share-based payments). For a detailed analysis of IFRS 1 exemptions utilized, refer Appendix V.
15
64 3 2
18
39
12
6 7
11
32
Material Capital goods Health careequipment &
services
Real estate Food & beverages Other sectors
No:of Companies used exemption Total no: of companies
Sector-wise analysis (number of companies)
Sector-wise analysis (exemptions utilised)
Early adoption ofIFRS 9 and IFRS 15
05
IFRS adoption in KSAAll Rights Reserved — EY 15
Early adoption of IFRS 9 and IFRS 15
IFRS 9
IFRS 15
10 companies
07 companies
In May 2014,the IASB issued IFRS 15 Revenuefrom Contracts with Customers that will supersede virtually all revenue recognitionrequirements under IFRS and become effective from 1 January 2018 with early adoption permitted. In July 2014, the IASB issued IFRS 9 Financial Instruments,replacing IAS 39 Financial Instruments:Recognition and Measurement. The standard is effective for annual periodsbeginning on or after1 January 2018, with earlyadoption permitted.
The companies which early adopted IFRS 9 belongs to consumer durables and apparels, capital goods, energy, material, real estate, retailing and transportation sectors.
IFRS 15 has been early adopted by companies in the consumer durables and apparels, capital goods, material, real estate and transportation sectors.
Appendices
06
IFRS adoption in KSAAll Rights Reserved — EY 17
Index
Sector descriptionI 18
Retained earnings analysisII 21
Assets analysisIII 22
Liabilities analysisIV 23
Exemptions utilizedV 24
Sector analysisVI 25
IFRS adoption in KSAAll Rights Reserved — EY 18
Appendix I
Sector descriptionTadawul’s market structure is classified based on the Level 2 classification under Global
Industry Classification Standard (GICS)*. The details of the sectors considered for the analysis
are given in the alphabetical order here:
Capital goods (12 companies)
It consists of:
• Aerospace and defense
• Building products
• Construction and engineering
• Electrical equipment
• Industrial conglomerates
• Machinery
• Trading companies and distributors
Electrical equipment includes: electrical components and equipment, heavy electrical equipment.
Machinery includes: Construction machinery and heavy trucks, agricultural and farm machinery, and industrial machinery.
Commercial and professional services (1 company)
It consists of:
• Commercial services and supplies
• Professional services
Commercial services and supplies includes: commercial printing, environmental and facilities services, office services and supplies, diversified support services, and security and alarm services. Professional services includes human resource and employment services, research and consulting services.
Consumer durables and apparel (4 companies)
It consists of:
• Household durables
• Leisure products
• Textiles, apparel and luxury goods
Household durables includes: commercial printing, environmental and facilities services, office services and supplies, diversified support services, and security and alarm services. Professional services includes human resource and employment services, and research and consulting services.
Consumer services (5 companies)
It consists of:
• Hotels, restaurants and leisure
• Diversified consumer services
Hotels, restaurants and leisure includes: casinos and gaming, hotels, resorts and cruise lines, leisure facilities and restaurants. Diversified consumer services include education services and specialized consumer services.
*The Global Industry Classification Standard (GICS) is an industry taxonomy developed in 1999 by MSCI andStandard & Poor's (S&P) for use by the global financial community.
IFRS adoption in KSAAll Rights Reserved — EY 19
Appendix I (contd)
Sector descriptionEnergy (4 companies)
It consists of:
• Energy equipment and services
• Oil, gas and consumable fuels
Energy equipment and services includes: oil and gas drilling, oil and gas equipment and services. Oil, gas and consumable fuels includes integrated oil and gas, oil and gas exploration and production, oil and gas refining and marketing, oil and gas storage and transportation, and coal and consumable fuels.
Food and beverages (11 companies)
It consists of:
• Beverages
• Food products
• Tobacco
Beverages includes: brewers, distillers and vintners, and soft drinks. Food products includes agricultural products, and packaged foods and meats.
Food and staples retailing (4 companies)
It includes: drug retail, food distributors, food retail, and hypermarkets and super centers.
Health care equipment and services (6 companies)
It consists of:
• Health care equipment and supplies
• Health care providers and services
• Health care technology
• Pharmaceuticals
• Life sciences tools and services
Health care equipment and supplies includes: health care equipment and health care supplies. Health care providers and services includes health care distributors, health care services, health care facilities and managed health care.
Materials (39 companies)
It consists of:
• Chemicals
• Construction materials
• Containers and packaging
• Metals and mining
• Paper and forest products
Chemicals includes: commodity chemicals, diversified chemicals, fertilizers and agricultural chemicals, industrial gases and specialty chemicals. Containers and packaging includes metal and glass containers and paper packaging. Metals and mining includes aluminum, diversified metals and mining, copper, gold, precious metals and minerals, silver and steel industries. Paper and forest products includes forest products and paper products.
IFRS adoption in KSAAll Rights Reserved — EY 20
Appendix I (contd)
Sector descriptionMedia (1 company)
Media includes: advertising, broadcasting, cable and satellite, movies and entertainment, and publishing.
Real estate (7 companies)
It includes: diversified Real estate activities, real estate operating companies, real estate development andreal estate services.
Retailing (5 companies)
It consists of:
• Distributors
• Internet and direct marketing retail
• Multiline retail
• Specialty retail
Multiline retail includes: department stores and general merchandise store. Specialty retail includes apparel retail, computer and electronics retail, home improvement retail, specialty stores, automotive retail and home furnishing retail.
Telecommunication services (3 companies)
It consists of:
• Diversified telecommunication services
• Wireless telecommunication services
Diversified telecommunication services includes: alternative carriers and integrated telecommunication services.
Transportation (3 companies)
It consists of:
• Air freight and logistics
• Airlines
• Marine
• Road and rail
• Transportation Infrastructure
Road and rail includes: railroads and trucking. Transportation infrastructure includes airport services, highways and rail tracks, and marine ports and services.
Utilities (2 companies)
It consists of:
• Electric utilities
• Gas utilities
• Multi-utilities
• Water utilities
• Independent power and renewable electricity producers
Independent power and renewable electricity producers includes: independent power producers and energy traders, and renewable electricity.
IFRS adoption in KSAAll Rights Reserved — EY 21
Appendix II
Retained earnings analysis
Sectors
Retained earnings on date of transition
(SOCPA) SARmRetained earning
(IFRS) SARmNet change
SARm
% of net change over retained
earning (SOCPA)
Real estate 2,137 539 (1,598) (74.80)%
Capital goods 5,123 2,531 (2,591) (50.60)%
Material 38,546 26,385 (12,161) (31.55)%
Consumer durables and apparel
275 207 (68) (24.40)%
Energy 2,857 2,416 (441) (15.50)%
Food and beverages 7,992 6,983 (1,009) (12.60)%
Health care equipment and services
1,863 1,685 (178) (9.60)%
Transportation 918 848 (70) (7.60)%
Consumer services 2,005 1,882 (123) (6.10)%
Food and staples retailing
724 703 (21) (2.90)%
Telecommunication 65,894 65,225 (669) (1.00)%
Commercial and professional services
212 211 (1) 0.00%
Media (99) (96) 3 3. 0%
Retailing 1,016 1,054 38 3.70%
Utilities 16,068 16,842 773 4.80%
Total 145,531 127,415 (18,116) (12.45)%
IFRS adoption in KSAAll Rights Reserved — EY 22
Appendix III
Assets analysis
Sectors PPEAdvances and prepayments
Investment properties Receivables
Available for sale investments
Deferred tax
Held to maturity Cash
Capital goods 487 (163) 8 (19) 88 – – (27)
Commercial and professional services
– – – – – – – –
Consumer durables and apparel
(3) – – (13) 84 – – –
Consumer services (546) (119) 544 104 – 3 – –
Energy (282) – – (70) – – – –
Food and beverages 941 (40) 368 (247) (28) – – (20)
Food and staples retailing
(216) (56) 170 (18) (1) – – (6)
Health care equipment and services
10 19 – (86) – 18 – (5)
Material (1,658) 143 194 32 149 271 – –
Media (6) – – – – – – –
Real estate (719) (17) (873) (44) 233 – – 2
Retailing (735) (69) 692 63 99 – – –
Telecommunication 221 – – 1,563 (12) – – –
Transportation (327) (22) 307 47 (17) – – –
Utilities 16,205 4,974 539 – 282 – 210 193
Total 13,371 4,651 1,948 1,311 878 292 210 136
All figures are in SARm with rounding off exception
SectorsBiological
assetsIntangible
assets InventoriesLoans to
others Goodwill
Investment in other
companies Other
assets
Total adjustment
to assets
Capital goods – (4) (98) (66) – (78) (1,385) (1,256)
Commercial and professional services
– – (21) – – – – (21)
Consumer durables and apparel
– – 9 – – (150) – (72)
Consumer services – – – – – (2) – (16)
Energy – – – (37) – – (13) (403)
Food and beverages 36 86 1 – – (371) (35) 693
Food and staples retailing 1 2 (35) – – 43 – (116)
Health care equipment and services
– 4 (67) – – 35 – (73)
Material – (121) (293) (832) (3,131) (1,326) (1,527) (8,099)
Media – 7 (4) – – – – (3)
Real estate (49) 17 – – – (1) (754) (2,205)
Retailing – 3 – – – – (7) 46
Telecommunication – (352) – – – (487) (1,464) (531)
Transportation – 22 – – – 13 (8) 15
Utilities – 157 98 (860) – (1,965) (4,804) 15,028
Total (12) (180) (410) (1,795) (3,131) (4,288) (9,997) 2,986
Net
incre
ase in
assets
Net
decre
ase in
assets
IFRS adoption in KSAAll Rights Reserved — EY 23
Appendix IV
Liabilities analysisAll figures are in SARm with rounding off exception
Sectors
Government grants
Loans Other
liabilities Employee
benefitsDeferred
income
Provision for decommissioning
liability
Tax liabilities
Capital leases
Capital goods – (114) (256) 95 – 14 21 –
Commercial andprofessional services
– – – – – – – –
Consumer durables and apparel
– – – 5 – – – –
Consumer services – – (1,431) 40 1,063 – 8 68
Energy – – – 71 – – – –
Food and beverages 14 268 18 219 (181) 97 24 –
Food and staples retailing
– – (16) – – – (1) –
Health care equipment and services
42 (59) 110 46 18 – (3) –
Material – (1,042) 23 3,738 – 174 482 88
Media – – – (3) – – – –
Real Estate – (15) (702) 23 (8) – – –
Retailing – – (110) 43 (2) – – –
Telecommunication – 1,294 (4,054) (329) 198 336 – –
Transportation – – (81) 75 18 – – –
Utilities 46,035 8,683 12,048 1,067 (268) – – –
Total 46,091 9,015 5,503 5,090 837 621 531 156
Net
incre
ase in
lia
bilit
ies
Ne
t d
ecre
ase
in lia
bilit
ies
Sector Dividends due Due to related parties Payables Total adjustment to
liabilities
Capital goods 6 (6) 91 (149)
Commercial and professional services
– – (21) (21)
Consumer durables and apparel – – – 5
Consumer services – – 246 (6)
Energy – – 16 87
Food and beverages – – 97 554
Food and staples retailing – – (43) (59)
Health care equipment and services (10) – (7) 136
Material – (137) 109 3,389
Media – – – (3)
Real estate – – (8) (709)
Retailing – – 95 27
Telecommunication – – 2,644 88
Transportation (85) – 154 81
Utilities – – (53,372) 14,194
Total (90) (143) (49,998) 17,615
IFRS adoption in KSAAll Rights Reserved — EY 24
Appendix V
IFRS 1 Exemptions utilized
Sectors IFRS 2 IFRS 3IFRS 9/IAS 39 IAS 16 IAS 21 IAS 23 IAS 28 IFRIC 1
IFRIC 4
Capital goods 6 4 1 1
Commercial and professional services
Consumer durables and apparel
1 1
Consumer services 3 1 2 1 2
Energy 1 1 1
Food and beverages 2 1
Food and staples retailing
1 1 1 1
Health care equipment and services
3 1 2 1
Material 1 10 3 2 2 4 1 2 3
Media 1 1 1
Real estate 1
Retailing 2 1 1 1 1
Telecommunication 2 1 1 1 1 1 1
Transportation 2 1
Utilities 1
Grand total 1 33 4 8 13 13 4 3 11
IFRS adoption in KSAAll Rights Reserved — EY 25
Appendix VI
Sector analysis
Sl. no. Sector Page no.
1 Capital goods 27
2 Commercial and professional services 29
3 Consumer durables and apparel 30
4 Consumer services 32
5 Energy 34
6 Food and beverages 35
7 Food and staples retailing 38
8 Health care equipment and services 41
9 Material 44
10 Media 48
11 Real estate 49
12 Retailing 51
13 Telecommunication 53
14 Transportation 55
15 Utilities 57
IFRS adoption in KSAAll Rights Reserved — EY 26
Appendix VI (contd)
Sector analysis
Capital goods
Sl. no Company name Change in RE % Total adjustment
to assets Total adjustment to
liabilities
1 Capital goods A –94% (774,359) 87,777
2 Capital goods B –51% (453,843) (277,848)
3 Capital goods C –36% – –
4 Capital goods D –20% (24,669) 17,423
5 Capital goods E –16% (12,671) 17,613
6 Capital goods F –14% – 8,786
7 Capital goods G –12% (1,105) 3,378
8 Capital goods H 95% 39,566 (1,767)
9 Capital goods I –6% – 8,340
10 Capital goods J –5% (14,807) (1,003)
11 Capital goods K 0% (11,132) (11,577)
12 Capital goods L 1% (3,100) (262)
IFRS adoption in KSAAll Rights Reserved — EY 27
Appendix VI (contd)
Sector analysis
Impact on retained earnings (SARm): Capital goods
5,123
2,531
(2,591)(4,000)
(2,000)
0
2,000
4,000
6,000
Net impact
Sum of RE (IFRS)
Sum of RE on date of transition (SOCPA)
Impact on assets (SARm): Capital goods
(163)
8
(19)
88
(27)(4)
(98)
(66)(78)
(1,385)
487500
50
0
–50
–100
–150
–1,300
–1,350
–1,400
(1,256)
Total adjustments to assets
Other assets
Investment in other companies
Loans to others
Inventories
Intangible assets
Cash
Available for sale investments
Receivables
Investment properties
Advances and prepayments
PPE
Capital goods (contd)
IFRS adoption in KSAAll Rights Reserved — EY 28
Appendix VI (contd)
Sector analysis
Impact on liabilities (SARm): Capital goods
(114)
(256)
95
14 21 6
(6)
91
(149)
(300)
(250)
(200)
(150)
(100)
(50)
0
50
100
Employee benefits
Loans
Tax liabilitiesOther liabilities Payables
Provision for decommissioning liability
Total adjustment to liabilities
Due to related parties
Dividends due
Capital goods (contd)
IFRS adoption in KSAAll Rights Reserved — EY 29
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Commercial and professional services A –0.20% (21,115) (20,698)
Impact on retained earnings (SARm): Commercial and professional services
212
211
(1)–1.0
212.0
211.5
211.0
0.0
–0.5
Net impactSum of RE (IFRS)Sum of RE on date of transition (SOCPA)
Impact on assets (SARm): Commercial and professional services
Impact on liabilities (SARm):Commercial and professional services
(21)
(21)
(24)
(20)
(16)
(12)
(8)
(4)
0
(21)
(21)
(24)
(20)
(16)
(12)
(8)
(4)
0
Total adjustment to assetsInventories Total adjustment to liabilitiesPayables
Commercial and professional services
IFRS adoption in KSAAll Rights Reserved — EY 30
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Consumer durables and apparels A –35% (53) 1
2 Consumer durables and apparels B –14% (19) 5
3 Consumer durables and apparels C –1% – (1)
4 Consumer durables and apparels D 0% – (0)
Impact on retained earnings (SARm): Consumer durables and apparels
Net impactSum of RE (IFRS)Sum of RE on date of transition (SOCPA)
275
207
(68)(100)
(50)
0
50
100
150
200
250
300
Consumer durables and apparels
IFRS adoption in KSAAll Rights Reserved — EY 31
Appendix VI (contd)
Sector analysis
Impact on assets (SARm):Consumer durables and apparels
Impact on liabilities (SARm): Consumer durables and apparels
(3)
(13)
9
84
(150)
(72)
55
(1)
0
1
2
3
4
5
6
-10
0
–150
-5
5
85
Total adjustment to assets
Investment in other companies
PPE
Inventories
Available for sale investments
Receivables Total adjustments to liabilities
Employee benefits
Consumer durables and apparels (contd)
IFRS adoption in KSAAll Rights Reserved — EY 32
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Consumer services A –48% (2) 72
2 Consumer services B –6% (10) (0)
3 Consumer services C –6% 2 5
4 Consumer services D –5% (6) 1
5 Consumer services E –2% 0 (83)
Impact on retained earnings (SARm): Consumer services
Net impactSum of RE (IFRS)Sum of RE on date of transition (SOCPA)
(123)
1,882
2,0052,100
2,000
1,900
0
-100
–200
Consumer services
IFRS adoption in KSAAll Rights Reserved — EY 33
Appendix VI (contd)
Sector analysis
Impact on assets (SARm): Consumer services
(119)
104
3
(2)
(16)
544
(546)
550
100
50
0
–50
–100
–550
Total adjustment to assets
Investment in other companies
Deferred tax
Receivables
Investment prop
Advances and prepayments
PPE
Impact on liabilities (SARm): Consumer services
40
8
68
–1,431
1,063246
–6
1,070
60
50
40
30
20
10
0
–1,440
Total adjustment to liabilities
PayablesTax liabilities
Deferred income Capital leases
Employee benefits
Other liabilities
Consumer services (contd)
IFRS adoption in KSAAll Rights Reserved — EY 34
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Energy A –11% (13) 4
2 Energy B –11% (352) 27
3 Energy C 19% (37) 55
4 Energy D 0% – –
Impact on retained earnings (SARm): Energy
Net impactSum of RE (IFRS)Sum of RE on date of transition (SOCPA)
(441)
2,857
2,416
0
3,000
–500
2,500
Impact on assets (SARm): Energy Impact on liabilities (SARm): Energy
(282)
(70)(37)
(13)
(403)(450)
(300)
(150)
0
PPE Total adjustmentto assetOther assets
Loans to others
Receivables
71
16
87
0
20
40
60
80
100
Payables
Total adjustment to liabilities
Employee benefits
Energy
IFRS adoption in KSAAll Rights Reserved — EY 35
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Food and beverages A –1263% 194 10
2 Food and beverages B –370% 18 2
3 Food and beverages C –31% 480 456
4 Food and beverages D 192% 28 39
5 Food and beverages E –5% (16) (4)
6 Food and beverages F –2% – 3
7 Food and beverages G –1% (2) 46
8 Food and beverages H 0% 1 2
9 Food and beverages I 0% (0) (0)
10 Food and beverages J 4% (0) 0
11 Food and beverages K 5% (10) –
Impact on retained earnings (SARm): Food and beverages
Net impactSum of RE (IFRS)Sum of RE on date of transition (SOCPA)
(1,009)
6,983
–1,000
–1,500
0
–500
8,000
7,500
7,000
7,992
Food and beverages
IFRS adoption in KSAAll Rights Reserved — EY 36
Appendix VI (contd)
Sector analysis
Impact on assets (SARm): Food and beverages
(40)(20)
36
86
1
941
368
(247)
(28)
693
(35)
(371)
1,000
900
800
700
0
–300
–400
Total adjustment to assets
Other assets
Investment in other companies
Inventories
Intangible assets
Biological assets
Cash
Available for sale investments
Receivables
Investment properties
Advances and prepayments
PPE
Food and beverages (contd)
IFRS adoption in KSAAll Rights Reserved — EY 37
Appendix VI (contd)
Sector analysis
Impact on liabilities (SARm): Food and beverages
14 18
97
24
97
0
–200
500
600
400
–100
300
Loans Payables
Total adjustment to liabilitiesProvision for decommissioning liability
Tax liabilitiesEmployee benefits
Deferred income
Other liabilities
Government grants
–181
219
268
554
Food and beverages (contd)
IFRS adoption in KSAAll Rights Reserved — EY 38
Appendix VI (contd)
Sector analysis
Sl. no Co.name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Food and staples retailing A 69% (9) 1
2 Food and staples retailing B –1% (106) (66)
3 Food and staples retailing C –6% (1) 6
4 Food and staples retailing D 0% – –
Impact on retained earnings (SARm): Food and staples retailing
Net impactSum of RE (IFRS)Sum of RE on date of transition (SOCPA)
(21)
724
703
–20
–30
0
–10
730
720
710
Food and staples retailing
IFRS adoption in KSAAll Rights Reserved — EY 39
Appendix VI (contd)
Sector analysis
Impact on assets (SARm): Food and staples retailing (contd)
0
Total adjustment to assets
Intangible assets
Biological assets
Cash
Available for sale investments
Receivables
Investment properties
Advances and prepayments
PPE
(56)
(18)
(1)(6)
1 2
(35)
43
–10
–20
–30
–40
–50
–220
40
20
20
10
170
(216)
170
Food and staples retailing (contd)
Investment in other Companies
Inventories
(116)
IFRS adoption in KSAAll Rights Reserved — EY 40
Appendix VI (contd)
Sector analysis
Impact on liabilities (SARm): Food and staples retailing
–16
–1
–43
–59
0
–5
–10
–15
–45
–50
–55
–60
PayablesTax liabilitiesOther liabilities Total adjustment to liabilities
Food and staples retailing (contd)
IFRS adoption in KSAAll Rights Reserved — EY 41
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Health care equipment and services A –72% (127) 121
2 Health care equipment and services B 15% 61 9
3 Health care equipment and services C –3% (4) 8
4 Health care equipment and services D –2% 6
5 Health care equipment and services E 1% (2) (6)
6 Health care equipment and services F 1% – (2)
Impact on retained earnings (SARm): Healthcare equipment and services
Net impactSum of RE (IFRS)Sum of RE on date of transition (SOCPA)
(178)
1,863
1,6851,800
–200
0
2,000
Health care equipment and services
IFRS adoption in KSAAll Rights Reserved — EY 42
Appendix VI (contd)
Sector analysis
Impact on assets (SARm): Healthcare equipment and services
10
(5)
4
1819
(73)
(67)
(86)
0–5
–70
5
10
35
20
30
25
–80
–90
–75
–85
Investment in other companies
Total adjustment to AssetsIntangible assetsReceivables
Inventories
Advances and prepayments
PPE
Cash
Deferred tax
35
Health care equipment and services (contd)
IFRS adoption in KSAAll Rights Reserved — EY 43
Appendix VI (contd)
Sector analysis
Impact on liabilities (SARm): Healthcare equipment and services
42
–59
46
18
–3–10 –7
110
136130
40
30
20
10
0
110
140
120
–30
–40
–10
–20
–60
–50
Government grants
Total adjustment to liabilities
Loans
Other liabilities
Employee benefits
Deferred Income
Tax liabilities
Payables
Dividends due
Health care equipment and services (contd)
IFRS adoption in KSAAll Rights Reserved — EY 44
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Material A –1570% (18) 4
2 Material B –629% (115) 3
3 Material C –261% (3)
4 Material D –240% (164) 20
5 Material E –68% (313) –
6 Material F –65% (682) 80
7 Material G –58% (985) 85
8 Material H –57% (2,428) 2,896
9 Material I –50% (434) 24
10 Material J –33% (32) 1
11 Material K –30% (2,573) (312)
12 Material L –27% – 23
13 Material M –27% (113) 236
14 Material N –23% (11) 2
15 Material O –23% (242) (4)
16 Material P –21% (103) 33
17 Material Q –12% (35) 10
18 Material R –10% (92) 5
19 Material S 15% 250 (31)
20 Material T 22% (51) –
21 Material U –4% 148 85
22 Material V –3% (41) 227
Material
IFRS adoption in KSAAll Rights Reserved — EY 45
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
23 Material W –9% (5) –
24 Material X –8% (14) (2)
25 Material Y –4% 30 21
26 Material Z –4% – 3
27 Material AA –4% (19) 3
28 Material AB –4% (3) 6
29 Material AC –3% (6) –
30 Material AD –3% – 1
31 Material AE –2% – 2
32 Material AF –1% (5) –
33 Material AG –1% – 8
34 Material AH 0% 2 8
35 Material AI 0% (55) (55)
36 Material AJ 0% – –
37 Material AK 0% – –
38 Material AL 0% – –
39 Material AM 0% 11 9
Material (contd)
IFRS adoption in KSAAll Rights Reserved — EY 46
Appendix VI (contd)
Sector analysis
Impact on retained earnings (SARm): Material
38,546
26,385
(12,161) 15,000
10,000
5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Net impactSum of RE (IFRS)Sum of RE on date of transition (SOCPA)
Impact on assets (SARm): Material
143 194
32 149
271
(121)
(293)
(832)
(1,527)
(1,326)
(3,131)(1,658) (8,099)
–8,200
–1,600
–1,400
–800
–600
–400
–200
0
200
400
Receivables
Investment properties
Advances and prepayments
PPE
Goodwill
Loans to others
Inventories
Intangible assets
Deferred tax
Available for sale investments
Total adjustment to assets
Other assets
Investment in other countries
Material (contd)
IFRS adoption in KSAAll Rights Reserved — EY 47
(1,042)
23174
482
88
–137
109
3,389
3,738
Appendix VI (contd)
Sector analysis
Impact on liabilities (SARm): Material
4,000
3,500
0
Employee benefits
Other Liabilities
Loans
Tax liabilities
Provision for decommissioning liability
Payables
Capital leases Total adjustment to Liabilities
Due to Related Parties
–500
–1,000
–1,500
Material (contd)
IFRS adoption in KSAAll Rights Reserved — EY 48
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Media A –2.80% (2,644) (2,816)
Impact on retained earnings (SARm): Media
Impact on assets (SARm): Media Impact on liabilities (SARm): Media
3
(96)
(99)
4
2
0
–100
–98
–96
Net impactSum of RE (IFRS)Sum of RE on date of transition (SOCPA)
7
(4)
(3)
(6)
(4)
(2)
0
2
4
6
8
(6)
Total adjustment to assets
Inventories
Intangible assets
PPEEmployee benefits
Total adjustment to liabilities
0,0
–0.5
–1.0
–1.5
–2.0
–2.5
–3.0
–3.0
–3.0
Media
IFRS adoption in KSAAll Rights Reserved — EY 49
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Real estate A –8551% (2,144) (697)
2 Real estate B –42% (71) 3
3 Real estate C –4% (56) 3
4 Real estate D –2% (2) (8)
5 Real estate E 0% – –
6 Real estate F 0% – –
7 Real estate G 4% 68 (10)
Impact on retained earnings (SARm): Real estate
539
(1,598)
2,500
500
0
–500
–1,000
–1500
–2,000
2,137
Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact
Real estate
IFRS adoption in KSAAll Rights Reserved — EY 50
–15
23
–8 –8
–702
–702–709
(17)
(44)
2
(49)
17
(1)
Appendix VI (contd)
Sector analysis
Impact on assets (SARm): Real estate
–10
0
–750
–20
–730
–30
–740
–2,210
–40
–720
10
240
(873)
233
(754)
(719)
(2,205)
Cash
Investment properties
Available for sale investments
Intangible assetsReceivables
Biological assets
Other assets
PPE
Total adjustment to assets
Advances and prepayments
Investment in other companies
Impact on liabilities (SARm): Real estate
–15
–710
25
20
–10
–705
15
10
5
0-5
Total adjustment to liabilities
PayablesLoans
Deferred incomeOther liabilities
Employee benefits
Real estate (contd)
IFRS adoption in KSAAll Rights Reserved — EY 51
38
1,054
1,016
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Retailing A 140% 70 –
2 Retailing B –7% (3) 23
3 Retailing C –4% (6) 1
4 Retailing D –3% (12) 5
5 Retailing E –1% (3) (2)
Impact on retained earnings (SARm): Retailing
1,060
20
1,040
1,020
0
Sum of RE (IFRS)Sum of RE on date of transition (SOCPA) Net impact
Retailing
IFRS adoption in KSAAll Rights Reserved — EY 52
(69)
63
99
3
(7)
692
(735)
46
Appendix VI (contd)
Sector analysis
Impact on assets (SARm): Retailing
Impact on liabilities (SARm): Retailing
60
700
40
80
20
0
–20
–60
–740
–40
Intangible assets
Other assetsPPE
Available for sale investments
Receivables
Advances and prepayments
Investment properties
Total adjustment to assets
–110
43
–2
95
(150)
(100)
(50)
0
50
100
27
Payables
Deferred income Total adjustment to liabilities
Employee benefits
Other liabilities
Retailing (contd)
IFRS adoption in KSAAll Rights Reserved — EY 53
(669)
65,225
65,894
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Telecommunication A 0% (480) (258)
2 Telecommunication B 1% (132) (115)
3 Telecommunication C –7% 82 461
Impact on retained earnings (SARm): Telecommunication
Sum of RE (IFRS)Sum of RE on date of transition (SOCPA) Net impact
66,000
65,500
0
–500
–1,000
Telecommunication
IFRS adoption in KSAAll Rights Reserved — EY 54
Appendix VI (contd)
Sector analysis
Impact on assets (SARm): Telecommunication
Impact on liabilities (SARm): Telecommunication
221
1,563
(12)
(352)(487)
(1,464)
2,000
1,500
1,000
500
0
–500
–1,000
–1,500
(531)
Total adjustment to assets
Other assets
Investment in other companies
Intangible assets
Available for sale investments
Receivables
PPE
200
1,000
2.800
800
1,200
400
600
0
–200
–4,200
1,294
-329
198336
2,644
-4,054
88
Deferred incomeLoans
Provision for decommissioning liability
Employee benefits
Other liabilities
Total adjustment to liabilities
Payables
Telecommunication (contd)
IFRS adoption in KSAAll Rights Reserved — EY 55
(70)
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Transportation A –14% (6) 67
2 Transportation B 2% 21 14
3 Transportation C 0% – –
Impact on retained earnings (SARm): Transportation
Sum of RE (IFRS)Sum of RE on date of transition (SOCPA) Net impact
950
900
850
0
–50
–100
848
918
Transportation
IFRS adoption in KSAAll Rights Reserved — EY 56
Appendix VI (contd)
Sector analysis
Impact on assets (SARm): Transportation
Impact on liabilities (SARm): Transportation
(22)
47
(17)
22
13
(8)
310
40
30
20
10
0
–10
–20
–330
15
(327)
307
Intangible assets
Available for sale investments
Receivables
Investment properties
Advances and prepayments
PPE
Total adjustment in assets
Other assets
Investment in other companies
–81
75
18
–85
154
81
(90)
(60)
(30)
0
30
60
90
120
150
180
Dividends due Total adjustment to liabilities
Deferred income
Employee benefits
PayablesOther liabilities
Transportation (contd)
IFRS adoption in KSAAll Rights Reserved — EY 57
Appendix VI (contd)
Sector analysis
Sl. no Company name Change in RE %Total adjustment
to assets Total adjustment
to liabilities
1 Utilities A –77% – 17
2 Utilities B 5% 15,028 14,177
Impact on retained earnings (SARm): Utilities
Sum of RE (IFRS)Sum of RE on date of transition (SOCPA) Net impact
773
17,000
16,500
500
0
16,842
16,068
Utilities
IFRS adoption in KSAAll Rights Reserved — EY 58
8,683
12,048
1,067
–268
14,194
Appendix VI (contd)
Sector analysis
Impact on assets (SARm): Utilities
Impact on liabilities (SARm): Utilities
4,974
539 282 210 193 157 98
(860)
17,000
16,000
4,000
3,000
2,000
1,000
0
–1,000
–5,000 (4,804)(1,965)
16,205
15,028
Total adjustment to assets
Other assets
Investment in other companies
Loans to others
Inventories
Intangible assets
Cash
Held to maturity
Available for sale investments
Investment properties
Advances and prepayments
PPE
0
–54,000
8,000
14,000
48,000
4,000
2,000
12,000
6,000
10,000
–53,372
46,035
Government grants
Payables
Total adjustment to liabilities
Employee benefits
Other liabilities Deferred income
Loans
Utilities (contd)
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