meta_id 3287256

On June 30, 2026, Saudi Arabia's Capital Market Authority (CMA) announced its Board's decision permitting listed joint-stock companies on the Saudi Exchange (Tadawul) to early adopt International Financial Reporting Standard No. 18 (IFRS 18) "Presentation and Disclosure in Financial Statements" during 2026. IFRS 18 was issued by the International Accounting Standards Board (IASB)and locally adopted by the Saudi Organisation for Chartered and Professional Accountants (SOCPA) in 2024. The standard enhances requirements for presentation and disclosure covering the statement of financial performance, aggregation and disaggregation principles, and management-defined performance measures. Mandatory application commences for financial periods beginning on or after January 1, 2027. Key points include: Listed companies that early adopt IFRS 18 during 2026 must announce their IFRS 18-prepared financial statements and the effect of early adoption on the Tadawul website, whilst continuing to prepare approved financial statements under IAS 1 and publishing them through the Exchange's designated electronic systems to fulfil statutory disclosure requirements. Listed companies must continue preparing approved financial statements in accordance with IAS 1 until mandatory application of IFRS 18 commences on January 1, 2027. For interim and annual financial statements covering periods beginning on or after April 1, 2026, listed companies must disclose a preliminary assessment of the expected impact of the initial application of IFRS 18. Boards of directors are required to continuously monitor progress toward compliance with IFRS 18 ahead of its mandatory effective date. Listed companies must comply with paragraphs (c) and (d) of Article 66 of the Rules on the Offer of Securities and Continuing Obligations, as amended by CMA Board Resolution No. 3-6-2026 dated January 19, 2026.