Companies to benefit from IFRS adoption in Kingdom

Ahmed Reda
Updated 18 November 2017
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Companies to benefit from IFRS adoption in Kingdom

Companies in Saudi Arabia are facing an era of change in their accounting practices due to changes being implemented by the Saudi Organization of Certified Public Accountants (SOCPA) to support the “One Global Financial Reporting Framework” vision of International Accounting Standards Board (IASB). This is according to Ahmed Reda, MENA consumer products and retail leader at EY.
Reda said SOCPA has endorsed International Financial Reporting Standards (IFRSs) with some modifications resulting in additional disclosures and ensuring compliance with Shariah. SOCPA required all listed companies to apply endorsed IFRSs from 2017 whereas unlisted companies will be adopting from 2018.
He said by issuing the Q1 results under IFRS, listed companies in Saudi Arabia have successfully taken the initial step in this direction.
“The transition to IFRS promises transparent, comparable and consistent financial information to guide investors in making optimal investment decisions. Some of the key benefits that the companies will enjoy from IFRS adoption include: increased foreign direct investment (FDI), enhanced quality reporting, transparency and comparability, and more transparency to perform risk assessments on financial statements and other ratios,” Reda said.
He said companies in the Kingdom should consider whether they want to be early adopters of the standards, which will be applicable in the next one to two years (i.e. IFRS 9, 15 and 16). “This may help them to improve their financial reporting while also avoiding a second wave of change in 2018, which could result in efficiencies in the longer term,” Reda added.
“The availability of skilled resources will also remain a challenge for the next few years. Further, IFRS compliance is not a onetime exercise. Companies should retain or hire the necessary resources to ensure smooth and seamless compliance of IFRS. This incorporates setting up consultative groups to be accessible to react speedily to challenges confronted and training and development of their employees.”
Starting from 2018, all entities which are not listed are required to adopt IFRS with an option to apply IFRS for small and medium enterprises (SMEs).
“Accordingly, they need to start assessing the impact and learning from the experience of listed companies as the transition is not merely an accounting change but will have an organizational wide impact including taxation, marketing, sales, procurement, contracting, human resources and others,” he said.


Land Rover, Terry Grant smash world record

Stunt driver Terry Grant flipped the Range Rover Sport SVR up on to two wheels with the use of a ramp, before hitting speeds of up 60mph on Goodwood’s famous hillclimb.
Updated 19 July 2018
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Land Rover, Terry Grant smash world record

Land Rover and international stunt driver Terry Grant smashed a world record at this week’s Goodwood Festival of Speed, with a two-wheel speed run in the new Range Rover Sport SVR. Grant’s 2:24.5 run up the famous hillclimb broke Grant’s old record for a mile traveled in a car on two wheels, set in 2011, by more than 30 seconds.
Grant flipped the Range Rover Sport SVR up on to two wheels with the use of a ramp, before hitting speeds of up 60mph on Goodwood’s famous hillclimb as he set the new Guinness World Record time.
Grant snatched the record in a dramatic last gasp attempt on Sunday afternoon, having attempted four runs earlier in the weekend, none of which Grant managed to complete.
The Range Rover Sport SVR is a 575hp performance SUV, capable of 0-60mph in 4.3 seconds and a top speed of 174mph — with four wheels on the road, at least. The Range Rover Sport only required one modification for the world record run, a tweak to its differential to allow the car to deliver more power to the two wheels on the ground — both of which were pumped up to 90PSI.
Grant is a multiple world-record holder, with 25 Guinness World Records already to his name, and with this latest record, Grant has bested a 2:55 run that he himself set at Goodwood in 2011.
Stunt driver Grant said: “It really shouldn’t be underestimated how difficult a two-wheeled speed run like this is; you are always fighting to keep the car balanced right on the edge, as it tries to tip either one way or the other. You need to be conscious of everything, from the camber of the road to the strength of the wind. Thankfully, conditions were excellent and the Range Rover Sport SVR was the perfect precision tool for the job.”
The world record was not the only amazing Land Rover moment of the Festival of Speed, as 70 historic and important Land Rovers took to the hill in what was the largest batch of cars to ever tackle the famous route in one go. From 1948 to 2018, the parade of cars celebrated 70 years of one of Britain’s most iconic automotive brands.