Saudi Capital Market Authority announces rules for property financial statements

Tue, 2021-02-23 15:40

The Saudi Capital Market Authority (CMA) on Monday announced that it will allow investment fund managers to use the fair value or revaluation model to measure property and investment property for the 2023 fiscal year and beyond.

The authority’s board of commissioners issued a resolution on June 6, 2017, obliging investment fund managers to apply the cost model to measure property, plant, equipment, investment property, and intangible assets when preparing International Financial Reporting Standards (IFRS) statements.

At the time, it indicated that the CMA would analyze the feasibility of continuing to apply the cost model after three years.

In a statement, the authority said its board of commissioners had decided that investment fund managers could continue to use the model to measure properties and investment property in financial statements prepared for financial periods within the fiscal year starting before 2023.

The fair value model or the revaluation model could be used for financial periods within the fiscal years starting during 2023 or thereafter, and the cost model would be allowed to measure plant, equipment, and intangible assets for five years starting from early 2021, subject to review at the end of the five-year period.

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