| Additional Information |
1- At each reporting date and in accordance with IFRS 9 ‘Financial Instruments’, SABIC used to account for the derivatives on equity instruments for its forward contracts related to certain subsidiaries by reclassifying the respective non-controlling interests to non-current financial liabilities, as best proxy for the present value of the amount payable at the end of the respective joint venture agreements. In the context of the acquisition of 70% of SABIC by Saudi Aramco (“Aramco”), SABIC decided to make a different policy choice in accordance with IFRS 9 ‘Financial Instruments’ , to align certain accounting policies with Aramco, related to derivatives on equity instruments for the forward contracts. This change in accounting policy has been applied retrospectively during the third quarter of 2020 with a decrease of equity attributable to SABIC equity holders in retained earnings and an increase in non-current financial liabilities of SAR 706 million, respectively. In addition, a reversal adjustment has been made to recognize the non-controlling interests against non-current financial liabilities of SAR 1,014 million, respectively. Subsequently, changes in the present value of the non-current financial liabilities will be recognized through the consolidated statement of income. On ground of materiality, no retrospective adjustments have been made in the previous periods reported consolidated statement of income. 2- Further to what has been disclosed in our announcement of the results of second quarter of 2020 on 16-12-1440 corresponding to 06-08-2020 with respect to the alignment of the accounting policies and critical accounting judgments related to the reassessment of SABIC's control over certain investments in ventures retrospectively as a result of Saudi Aramco acquisition of 70% of SABIC shares, where the significant financial impacts have been disclosed in the above-mentioned announcement for all comparative periods , which are non-cash in nature. We would like to draw your attention that the comparative figures for the three months and the period ending 30-09-2019 have been restated and as a result of that, SABIC's net income for the year 2019 has been restated and reduced by SR 365 million (net income for the nine months ended 30-09-2019 has been reduced by SR 268 million and net income for the third quarter ended 30-09-2019 has been reduced by SR 97 million). Attached 3Q and year to date 2020 earnings release and presentation |
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