Ash-Sharqiyah’s board cancels capital cut proposal

Ash-Sharqiyah Development Co.’s board of directors has canceled its previous recommendation to reduce capital by 38.8 percent as of December 31, 2016, the company said in a bourse statement.

This was because accumulated losses have been offset in full on booking additional retained earnings of SAR 154.14 million due to implementing the International Financial Reporting Standards (IFRS), the company said.

Ash-Sharqiyah has booked the value of reclaimed land from the government land grant that wasn’t valued or recorded before and which has raised retained earnings account by 206 percent from capital as of March 31, 2017.