«Market Authority» exempts companies from their financial statements for the fourth quarter 2017

​             The board decided to exempt the listed companies from disclosing the financial statements for the fourth quarter of the current fiscal year to give companies sufficient opportunity to prepare their financial statements in accordance with international accounting standards to be accurate, error free and reliable in decision making. "This decision comes within the framework of the continuous endeavor to develop the financial market in the Kingdom and in order to keep pace with the continuous changes in international markets and to apply the best international standards and practices, taking into consideration the transition to international accounting standards," the authority said in a statement. The Capital Market Authority last year revised its quarterly financial statements from 15 to 30 days and audited annual financial statements from 75 calendar days to three months.
    "The decision to exempt listed companies from disclosing the financial statements for the fourth quarter of the current fiscal year with the aim of applying the transition to IFRS, which is the best international standards and practices, is positive for the market, In terms of the accuracy of quarterly and annual financial results of companies. "
    He said that the transition to IFRS will attract investors to the market because of the increased confidence in the financial results of private companies, and that these standards are the basis on which the global markets depend.
    He added that the fourth quarter results will not have a significant impact on the annual results of companies, adding that "the change to international accounting standards IFRS impact is more important to investors than the results of the fourth quarter because of the strength of the impact of the standard in the accuracy and credibility of the results after its application. "The number of international standards for the preparation of financial reports about 17 accounting standards adopted in the global markets."
    Hossam Al Ghamdi, Equity Market Analyst, said: "International accounting standards (IFRS) deal with financial standards and international financial reporting as well as the basis for the preparation and presentation of financial statements that are the basis for determining the options of traders and specifically speculators after confirming the details of the financial statements. Income, assets, liabilities and others ".
    Muhammed Al Omran, Financial Analyst, said: "Accurate financial statements protect small investors due to the application of international rules and standards in line with international markets. The high number of investors opens the way for increasing investment channels by increasing the number of listed companies." Delay is the most important factors that raise the level of transparency and attractiveness.