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Saudi Arabia

Financial Reporting Framework in Saudi Arabia

The banking and insurance regulator requires all Saudi Arabian banks and insurance companies whose shares are listed on the Saudi Stock Exchange to publish financial statements in conformity with IFRSs.

All other listed companies in the Kingdom of Saudi Arabia, as well as unlisted companies, must follow accounting standards generally accepted in the Kingdom of Saudi Arabia as issued by the Saudi Organization for Certified Public Accountants (SOCPA). The SOCPA was created by Royal Decree in 1992. It operates under the supervision of the Ministry of Commerce. Its objectives include:

  • Review, develop, and approve accounting standards (SOCPA does this thorugh its Accounting Standards Committee)
  • Review, develop, and approve auditing standards (SOCPA does this through its Auditing Standards Committee)

The SOCPA has approved an IFRS transition plan that will require listed entities to report using the "national standards that are closely converged with full IFRSs." Additionally, unlisted entities will be required to report under IFRS for SMEs as adopted in Saudi Arabia. A specific date for the IFRS transition plan has not yet been established. Details on the transition plan are available on the SOCPA website (English follows Arabic, please scroll down).

    A History of the Accounting and Auditing Profession in Saudi Arabia is available in English on the SOCPA website.

    Related news

    • SOCPA approves IFRS transition plan

    • Feb 28, 2013

    • The Saudi Organization for Certified Public Accountants (SOCPA) has approved an IFRS transition plan. The plan involves converging their national standards with full IFRSs and have all non-publicly accountable entities be required to report under the IFRS for SMEs.

    • Report from recent IFASS meeting released

    • Jan 17, 2013

    • A report has been issued summarising the discussions at a meeting of the International Forum of Accounting Standard Setters (IFASS, formerly the NSS) held in Zurich on 22-23 October 2012. The meeting covered a broad range of topics, including the future relationships between the IASB and regional and national standard setters, topical issues in financial reporting, reports from regional groups and administrative matters.

    • Outcomes from the fourth AOSSG meeting

    • Dec 13, 2012

    • The Asian-Oceanian Standard-Setters Group (AOSSG) has released a communiqué from its meeting held in Kathmandu, Nepal on 28 and 29 November 2012. Highlights include plans for an ‘IFRS Centre of Excellence for a Developing Country’ (IFRS COEDC) in Nepal that would help Nepal to build its standard-setting capacity, the need for rapid finalisation of the IASB's project on 'bearer biological assets', and discussion on Islamic finance accounting issues.

    • IASB and SOCPA discuss IFRS adoption in Saudi Arabia

    • Oct 29, 2012

    • Representatives of the International Accounting Standards Board (IASB) and the Saudi Organization of Certified Public Accountants (SOCPA) met on 24 October in London to discuss progress towards the adoption of International Financial Reporting Standards (IFRSs) in the Kingdom of Saudi Arabia. The meeting took place adjacent to the IASB’s World Standard-Setters conference held on 25 and 26 October in London.

    • Report from recent IFASS meeting released

    • Jun 04, 2012

    • The International Forum of Accounting Standards Setters (IFASS) met in Kuala Lumpur on 29-30 March 2012. A detailed report of proceedings at the meeting has now been released, outlining discussions on numerous topics such as the relationship between standard setters and the IASB, the IASB's work programme and processes, and a report on the possible adoption of IFRS in the United States noting a possible "step back".

    • Private sector task force final report to G20

    • Oct 07, 2011

    • The Private Sector Task Force of Regulated Professions and Industries has published a final report, Regulatory Convergence in Financial Professions and Industries, to the deputies of the G20. The report focuses on the private sector's point of view in regards to global regulatory convergence.

    • Emerging Economies Group established

    • Aug 02, 2011

    • On 26 July 2011, the Emerging Economies Group (EEG) of the International Accounting Standards Board (IASB) was established in Beijing. EEG founding members are all emerging economies from the G20 and Malaysia.

    • Private sector task force interim report to G-20

    • Jul 19, 2011

    • The Private Sector Task Force of Regulated Professions and Industries has published an interim report, Regulatory Convergence in Financial Professions and Industries, to the deputies of the G-20. The report focuses on the private sector's point of view in regards to global regulatory convergence.

    • A Driving Wind for IFRS from Asia-Oceania

    • Jun 08, 2011

    • The Asian-Oceanian Standard-Setters Group (AOSSG) has published today "A Vision Paper of the Asian-Oceanian Standard-Setters Group 2011 — A Driving Wind for IFRS from Asia-Oceania".

    • G20 finance ministers will watch convergence efforts

    • Apr 16, 2011

    • The G20 Finance Ministers and Central Bank Governors met in Washington DC on 14-15 April 2011. They agreed, among other things, to closely watch the progress of the IASB and FASB's convergence efforts.

    • Asian-Oceanian standard setters will meet

    • Oct 16, 2009

    • The first meeting of the Asian-Oceanian Standard-Setters Group (AOSSG) will take place on 4 and 5 November 2009 in Kuala Lumpur, hosted by the Malaysian Accounting Standards Board.

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