RIYADH: Arabian Centres Co.’s board of directors approved using the fair value model to measure real estate and investment properties — an exercise that the company expects will increase the value of its assets by SR10 billion ($2.7 billion).
Known as Almrakez, the mall operator is seeking an increase from nearly SR16 billion to SR26 billion in net assets by the third quarter of 2023, it said in a bourse filing.
It will implement the new model according to the IAS 40 accounting standard, as the Capital Market Authority allowed listed companies to use that system from 2022 onwards.
“The adoption of this accounting standard has many advantages to the company, among them that the value of investment properties will be presented at their fair value in the financial statements,” Almrakez stated.
The move will overall enhance the firm’s ability to expand its operations in a faster and more efficient manner by embracing new investment opportunities.
