“Sadq”: Returning 132.9 million riyals to the fair value reserve after an accounting correction
The Saudi Industrial Development Company announced "sincerity" Correcting an accounting treatment by returning the amount of (132.9) million riyals from the accumulated losses account to the fair value reserve for financial assets through other comprehensive income in accordance with the requirements of international standards.
The company explained in a statement on its website "Saudi Arabia trading"Correcting the accounting treatment for the company’s transfer, during the fiscal year ending December 31, 2023, of the fair value reserve balance of financial assets at fair value through other comprehensive income related to its invested share in the Arab Industrial Fiber Company. "Ibn Rushd" Its balance, as of the date of the transfer, amounted to (132.9) million riyals to the accumulated losses account before derecognition of the asset related to it, by reversing the accounting entry for the transfer that took place at the end of the fiscal year 2023 AD by restoring the reserve balance for the fair value of financial assets through other comprehensive income within equity, and re-presenting the comparative financial statements for the years 2023 AD and 2024 AD when preparing the financial statements for the year ending on December 31, 2025 AD, while disclosing the nature of The impact of this is in accordance with the requirements of international standards.
According to the company, the financial impact of correcting the accounting treatment is limited to reclassifying items within equity so that the amount of (132.9) million riyals is returned from the accumulated losses account to the fair value reserve account for financial assets at fair value through other comprehensive income, and there is no impact on operational activities, cash flows, assets and liabilities, and the resulting impact on retained profits is not subject to cash distributions because it is a reclassification resulting from a correction of an accounting treatment and not from profits. achieved operational performance and does not change the results of the company’s operational performance.
The company confirmed that this correction does not represent any change in accounting policies or accounting estimates, in order to ensure full compliance with the relevant laws and regulations, and to enhance the principles of transparency and disclosure, and in a way that reflects the company’s commitment to the Authority’s directives and its efforts to develop and advance the financial market.
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