Start Date for Adopting the International Accounting Standards

In the Name of Allah, the Most Gracious, the Most Merciful

Saudi Arabian Monetary Authority
Headquarters

General Department for Supervision of Financing Companies

Ref. No. : ............................................................
No. : 361000064191
Date : 30/04/1436
Attachments : ............................................................

Circular

Dear Sir,

Peace, mercy, and blessings of Allah be upon you:

Subject: Timing of Commencing Adoption of International Accounting Standards

Pursuant to Article 71 of the Executive Regulations of the Financing Companies Supervision System, which stipulates "that a financing company shall adopt International Accounting Standards in preparing its accounts and financial statements," financing companies are required to adopt International Accounting Standards as follows:

First: Financing companies that applied for a license as a joint stock company shall commence adopting International Accounting Standards from the beginning of the year 2015. These companies shall provide the Authority with their quarterly financial statements prepared in accordance with International Accounting Standards starting from the first quarter of 2015, in accordance with Article 72 of the Executive Regulations of the Financing Companies Supervision System.

Second: Financing companies that applied for a license as a limited liability company shall commence adopting International Accounting Standards from the date of issuance of the decision by His Excellency the Minister of Commerce and Industry declaring the company's conversion from a limited liability company to a joint stock company. These companies shall provide the Authority with their quarterly financial statements prepared in accordance with International Accounting Standards starting from the first quarter of their first financial year as a joint stock company or the first quarter of 2015, whichever is later, in accordance with Article 72 of the Executive Regulations of the Financing Companies Supervision System.

For your information and compliance.

Yours sincerely,

Abdulaziz bin Saleh Al-Faraih
Deputy Governor

Distribution Scope:
Financing companies operating in the Kingdom

P.O. Box: 2992, Riyadh: 11169, Phone: +966 4662020, Fax: +966 4662488