2.1 Statement of compliance
These financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by Saudi Organization for Chartered and Professional Accountants (SOCPA) in the Kingdom of Saudi Arabia as well as other standards and pronouncements issued by SOCPA (collectively referred to as “IFRS as endorsed in KSA”).
2.2 Basis of measurement
These financial statements have been prepared on a historical cost basis, except for the following:
- The employee benefit obligations which is recognised at the present value of future obligations using the Projected Unit Credit Method; and
- Lease liabilities which are recognised at the present value of future lease payments.
These financial statements are presented in thousands of Saudi Riyal, which is the Company’s functional and presentation currency. These financial statements have been rounded off to the nearest Saudi Riyal thousands, unless otherwise stated.
2.3 New standards, interpretations and amendments
Standards, interpretations and amendments adopted
The Company has applied the following amendments for the first time for the annual reporting period commencing January 1, 2025:
| Standard / Interpretation | Description | Effective date |
|---|---|---|
| IAS 21 | Lack of Exchangeability (Amendments to IAS 21) | January 1, 2025 |
The adoption of above amendments does not have any material impact on the financial statements during the year.
Standards, interpretations and amendments issued but not yet effective
The standards, interpretations and amendments issued, but not yet effective up to the date of issuance of the financial statements are disclosed below. The Company intends to adopt these standards, where applicable, when they become effective:
| Standard / Interpretation | Description | Effective from periods beginning on or after |
|---|---|---|
| IFRS 9 and IFRS 7 | Classification and Measurement of Financial Instruments – Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures | January 1, 2026 |
| Annual Improvements to IFRS Accounting Standards | Annual Improvements to IFRS Accounting Standards – Amendments to:
| January 1, 2026 |
| Amendments to IFRS 9 and IFRS 7 | Contracts Referencing Nature-dependent Electricity | January 1, 2026 |
| IFRS 18 | Presentation and Disclosure in Financial Statements | January 1, 2027 |
| IFRS 19 | Subsidiaries without Public Accountability:Disclosures | January 1, 2027 |
| IAS 21 | The effects of changes in foreign exchange rates | January 1, 2027 |
| IFRS 10 and IAS 28 | Sale or contribution of assets between an Investor and its Associate or Joint Venture – Amendments to IFRS 10 and IAS 28 | To be determined |
Management is in the process of assessing the impact, if any, these pronouncements may have in future reporting periods.