CMA Announces Its Board's Decision on Early Adoption of International Financial Reporting Standard No. (18) "Presentation and Disclosure in Financial Statements"
The Capital Market Authority (CMA) announces the issuance of its Board's decision on the early adoption of International Financial Reporting Standard No. (18) "Presentation and Disclosure in Financial Statements" (IFRS 18) by listed joint-stock companies on the Saudi Exchange (Tadawul) during 2026, in accordance with what the Standard permits.
IFRS 18 "Presentation and Disclosure in Financial Statements", issued by the International Accounting Standards Board (IASB) on 9 April 2024 and locally adopted by the Saudi Organization for Chartered and Professional Accountants (SOCPA) on 26 December 2024, aims to enhance the requirements for presentation and disclosure and information related to the following matters: the statement of financial performance (primary and sub-totals), aggregation and disaggregation principles, and management-defined performance measures.
This decision stems from the CMA's role in regulating and monitoring the activities and operations of entities subject to its oversight and supervision, and reflects its commitment to supporting listed joint-stock companies on the Saudi Exchange (Tadawul) in preparing for the early adoption of the new Standard, thereby contributing to a seamless transition when the mandatory application of the Standard commences for financial periods beginning on or after 1 January 2027.
Pursuant to the decision, listed joint-stock companies on the Saudi Exchange (Tadawul) are required to continue preparing their approved financial statements in accordance with the requirements of International Accounting Standard No. (1) (IAS 1) "Presentation of Financial Statements" and publishing them through the electronic systems designated for this purpose by the Saudi Exchange (Tadawul). The mandatory application of IFRS 18 "Presentation and Disclosure in Financial Statements" shall commence for financial reporting periods beginning on or after 1 January 2027.
Listed joint-stock companies on the Saudi Exchange (Tadawul) may early adopt IFRS 18 "Presentation and Disclosure in Financial Statements" during 2026 by announcing financial statements prepared in accordance with that Standard and the effect of such early adoption on the Saudi Exchange (Tadawul) website, while continuing to prepare approved financial statements in accordance with the requirements of IAS 1 "Presentation of Financial Statements" and publishing them through the electronic systems designated for this purpose by the Saudi Exchange (Tadawul) to fulfill the statutory financial disclosure requirements.
The decision also requires listed joint-stock companies on the Saudi Exchange (Tadawul) to disclose a preliminary assessment of the expected impact of the initial application of IFRS 18 "Presentation and Disclosure in Financial Statements" in their approved financial statements, for interim and annual financial statements prepared for financial periods beginning on or after 1 April 2026.
The CMA emphasizes the importance of the company's Board of Directors continuously monitoring updates related to the company's progress toward compliance with the application of IFRS 18 "Presentation and Disclosure in Financial Statements" when it becomes effective, and the obligation of listed joint-stock companies on the Saudi Exchange (Tadawul) to comply with paragraphs (c) and (d) of Article 66 of the Rules on the Offer of Securities and Continuing Obligations, issued by the CMA's Board pursuant to its Resolution No. 3-123-2017 dated 09/04/1439H corresponding to 27/12/2017, as amended by Resolution No. 3-6-2026 dated 30/07/1447H corresponding to 19/01/2026.
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