Further to the announcement published on Tadawul’s website on 26-01-2017 related to Saudi Arabian Amiantit Announces the Impact of the conversion of its financial statements to IFRS (Third Phase) Saudi Arabian Amiantit Co. announces addendum as :Following the announcement that the company made dated January 26, 2017 concerning the conversion to IFRS, which showed the expected financial impact of the conversion on the Groups consolidated shareholders equity, Saudi Arabian Amiantit Company would like to disclose the following developments; After the company announced the expected financial impact of the IFRS conversion on consolidated shareholders equity pertaining to the application of the deemed cost exemption under IFRS 1 on one of the groups industrial land based on the conditions put forth by the Saudi Organization for Certified Public Accountants (SOCPA) for the application of this exemption in its opinion dated May 22, 2016; the Group received a request from the CMA asking it to consult with SOCPA about the accounting treatment of the land under the specific circumstances pertaining to its acquisition in 1971, and considering that the group does not have supporting documents supporting its real historical acquisition cost at that time. However, the group has legal and current deeds for the land. After receiving opinion of SOCPA on 19 February 2017 related to the subject, through its external auditors, and in order to comply with the received opinion, the Groups management decided not to apply the deemed cost exemption, and, as a result, to keep the land at its current book value of SAR 1.4 million. The Group also wishes to emphasize that the fair market value of the subject land amounting to SR 323 million, which was previously announced on January 26, 2017 as part of the financial impact of the conversion to IFRS on consolidated shareholders equity, is the real economic value of the land based on input received from independent certified real estate appraisers.Further, as a result of the ongoing review by the auditors of the IFRS adjustment related to the discounting of the long-term trade receivables, it was decided to consider an equivalent impact for the discounting of these receivables on December 31, 2015 and December 31, 2016, respectively. As a result of the above, the group would like to clarify that the expected financial impact of the IFRS conversion on consolidated shareholders equity has now changed so that the total net impact will be a decrease of SR (157.7) million as of January 1, 2016, and a decrease by SR (134.2) million as of December 31, 2016, as demonstrated in enclosed table. The group would also like to note that all IFRS related impacts are still subject to the external audit, which is expected to be completed before March 31, 2017. Accordingly, the Group expects to publish its first 2017 interim quarterly financial statements applying IFRS.
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