Riyadh – Mubasher: Saudi Steel Pipe said that the conversion to the International Financial Reporting Standards (IFRS) resulted in a decrease in retained earnings by SAR 18.34 million.

The impact include write-off of the pre-operating expenses of associate company, Global Pipe Company by SAR 7.58 million, adding to write-off of the pre-operating expenses of SAR 6.71 million of subsidiary company (TSM Arabia), according to a bourse filing.

Moreover, as a result of the conversion to IFRS, non-current liability for employees end-of-service benefits increased by SAR 4.05 million as per actuarial valuation.

The company noted that the preparation of IFRS interim consolidated financial statements for Q4-16 and IFRS annual consolidated financial statements for 2016 is in process.

The effects of transition to IFRS on the financial statements to be audited by the External Auditor, which is expected to be completed by 31 March, the statement said.

The Saudi-listed firm said that The IFRS transition process is going smoothly and no significant difficulty is yet encountered, confirming its readiness to implement IFRS and prepare and release IFRS financial statements for Q1-17 within the applicable regulatory period.

Saudi Steel achieved SAR 65.56 million losses in Q4-16 compared to SAR 1.3 million for the year-ago period.