RIYADH: Saudi Arabia has achieved a significant milestone in public financial management by successfully transitioning to International Public Sector Accounting Standards on an accrual basis.
This move highlights the Kingdom’s commitment to modernizing its public sector financial practices as part of its Vision 2030 agenda.
The adoption of these global standards underscores Saudi Arabia’s efforts to enhance transparency, accountability, and decision-making within its government operations. The announcement was made during the Saudi Public Sector Accounting Forum, held on Dec. 8 in Riyadh, under the patronage of Finance Minister Mohammed Al-Jadaan.
Speaking at the event, Abdulaziz Al-Furaih, chairman of the steering committee at the Ministry of Finance, said: “Today marks a significant milestone, made possible by the unwavering support of our visionary leadership, which has fully backed this strategic national project.”
The forum highlighted Saudi Arabia’s transition to accrual-based accounting and its adoption of IPSAS.
Ian Carruthers, chairman of the International Public Sector Accounting Standards Board, emphasized that the Kingdom’s success was driven by Vision 2030 and the strong leadership of the Ministry of Finance.
Abdullah Al-Mehthil, assistant deputy minister of finance for policies and governance, explained: “Accrual accounting enhances the Kingdom’s ability to make strategic decisions by providing detailed insights into long-term financial obligations and improving the overall quality of financial reporting.”
A key focus of the forum was the cultural transformation needed within the public sector to sustain these changes. Mohammed Al-Nwaiser, assistant deputy minister for financial affairs and accounts at the Ministry of Finance, stressed the importance of evolving financial practices to ensure long-term sustainability following the transition.
Abdullah Majrashi, CEO of the Financial Skills Center, emphasized the center’s role in improving financial literacy and building capacity within the public sector workforce. Ross Smith, program leader and technical director at IPSASB, noted that while resistance to such transitions often stems from knowledge gaps, Saudi Arabia has made remarkable progress through its well-structured approach.
Hamad Al-Kanhal, deputy minister of finance for financial affairs and accounts, discussed the broader significance of the transformation, stating, “This is not just the implementation of an accounting standard; it is a comprehensive change management process that requires continuous commitment and collaboration across all relevant entities.”
He further emphasized that the shift would enable the government to manage its financial resources more efficiently and achieve its strategic objectives.
At the forum’s conclusion, several government entities were honored through the “Pioneers of Accrual Accounting” award program.
The Ministry of Communications and Information Technology, King Saud University, and the Saudi Water Authority received the Diamond Award for their excellence in business continuity following the transition and for issuing interim financial statements.
Other awards included recognition for governance and project management to the Digital Government Authority, innovative solutions to the National Center for Waste Management, and technological enablement to the Ministry of Environment, Water, and Agriculture.
The forum, which coincided with Saudi Arabia’s hosting of the IPSASB meetings, attracted over 600 attendees, including local and international experts, standard-setting legislators, and leaders from various Saudi government entities.
