IN an effort to ease the challenges of converting from the accounting standards currently applied in Saudi Arabia, KPMG Al Fozan & Partners have scheduled two seminars on International Financial Reporting Standards (IFRS) to be held at Riyadh's Burj Rafal Hotel Kempinski on May 22-23. "The seminars come as part of KPMG›s efforts to support the private sector in the Kingdom in general, and SMEs, in particular," said Khalil Al-Sedais, KPMG Saudi Arabia's Managing Partner and Head of Audit. "We believe that companies should view the changes in the accounting standards as far more than an accounting exercise. It is therefore our intention to help them upgrade their operations to align to international standards in a way that helps them develop and sustain their business, by preparing their systems and programs, relooking at contracts and carrying out training before the accounting changes take place." The first seminar will focus on International Financial Reporting Standards (IFRS) 15, 16 and 9; which relate to revenue from contracts with customers, leases and financial instruments respectively. This seminar will also include an introductory session that will discuss the effects of Value-Added Tax (VAT) on the local market. The second seminar will deal with the application of International Financial Reporting Standards for Small and Medium Sized Entities (IFRS for SMEs), as a means of reviewing and discussing the future of SMEs and the opportunities and challenges inherent in the adoption of the IFRS for SMEs. Entities which meet certain requirements can get some relief by opting to apply IFRS for SMEs instead of applying full IFRS. The adoption of International Financial Reporting Standards (IFRS) is an unavoidable aspect of Saudi Arabia's desire to achieve compatibility with the global system that is in use. All private sector companies are obliged to begin preparation for the changes in policies and procedures. This will facilitate comparison of financial performances of similar enterprises and ensure a continued economic openness of the Kingdom and dual-listings in financial markets. It will also serve to support mergers and acquisitions and expand the foreign investment base in the Kingdom. The implementation of International Financial Reporting Standards (IFRS) in the preparation of financial reporting began in early 2017 for companies listed on the Saudi Stock Exchange (Tadawul). International Financial Reporting Standards and International Financial Reporting Standards for Small and Medium Sized Entities will be applied by the rest of the companies in the Kingdom in early 2018. The transition to IFRS IFRS for SMEs in the Kingdom aims to improve the level of transparency and disclosure in financial statements and ensuring their validity.
