Riyadh – Mubasher: Saudi Arabian Amiantit Company said that shareholders equity decreased SAR 157.7 million as of 1 January and SAR 134.2 million as of 31 December 2016 as a result of converting to IFRS.

The company noted that all International Financial Reporting Standards (IFRS) related impacts are still subject to the external audit, which is expected to be completed before 31 March, according to a bourse filing.

Amiantit is expected to publish its interim financial statements for the first quarter of 2017 according to IFRS.

The group's management decided not to apply the deemed cost exemption and to keep the land at its current book value of SAR 1.4 million, noting that the fair market value of the land amounts to SAR 323 million, as announced to be the real economic value based on input received from an independent certified real estate appraiser, the statement said.

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 31 December 2015 and 31 December 2016, respectively.

The company said that it received a request from the Capital Market Authority (CMA) asking it to consult with the Saudi Organization for Certified Public Accountants (SOCPA) about the accounting treatment of the land under the specific circumstances pertaining to its acquisition in 1971.