SIDC says shareholders’ equity drops on IFRS application

Saudi Industrial Development Co. (SIDC) has reported a SAR 1.8 million drop in shareholders’ equity after the implementation of International Financial Reporting Standards (IFRS), the company said in a statement to Tadawul on Sunday.

Another negative impact was a SAR 2.6 million decline in inventory value.

Meanwhile, provisions for employee benefits and a long-term loan were reduced by SAR 450,000 and SAR 385,000, respectively, SIDC said.

The company will issue its first IFRS-compliant statements in Q1 2017, the statement added.

Saudi Arabia's market regulator, the Capital Market Authority (CMA), had asked all Tadawul-listed companies to adopt new accounting standards in line with IFRS by Jan. 1, 2017.