Riyadh – Mubasher: Ash Sharqiyah Development on Sunday reported adjusting its position and amortising all its accumulated losses.

“The adjustment was captured through the implementation of the International Financial Reporting Standards (IFRS) instead of the traditional accounting standards where the company recorded the value of the government grant reclaimed land that have not been previously assessed nor recorded in the company’s financials,” according to a filing to the Saudi Stock Exchange (Tadawul).

As at 31 December 2016, Ash Sharqiyah’s accumulated losses reached SAR 29.103 million representing 38.8% of its capital.

Following the company’s announcement of its preliminary financial results for the first three months ended 31 March 2017, Asharqiyah highlighted that following the adjustment, its SAR 29.103 million losses “have been converted into net earnings of SAR 154.142 million,” according to the statement.

The Saudi company recorded losses of SAR 3.6 million in the first quarter in 2017, compared to SAR 4.8 million in the same period in the year before.

The Saudi development firm had previously logged SAR 14.1 million in losses in 2016, against profits of SAR 8.9 million in 2015.

By 11:56 am Saudi time, Ash Sharqiyah’s stock surged 9.92% to SAR 35.