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IFRS vs. SOCPA GAAP

IFRS vs. SOCPA GAAP

 

SOCPA regulates Accounting profession: Saudi GAAP as issued by SOCPA (in Arabic) are applicable on all type of companies.

There are two main regulators besides SOCPA: 

Capital Market Authority (CMA) - Regulates all listed companies. 

Saudi Arabian Monetary Agency (SAMA) - Regulates all Banks, Insurance companies and IFRSs are followed.

Adoption status of IAS/IFRS

Although the accounting standards issued by SOCPA are 21 in total, the General Presentation and Disclosure Standard covers six topics that are addressed individually by the following IFRSs:

  • IAS 1 Presentation of Financial Statements
  • IAS 7 Cash Flow Statements
  • IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
  • IAS 10 Events after the Balance Sheet Date
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets
  • IFRS 5 Non‐current current Assets Held for Sale and Discontinued Operations.

 

  • 18 currently effective IFRSs have direct corresponding SOCPA Accounting Standards
  • 6 currently effective IFRSs are partially covered by SOCPA Accounting Standards
  • 9 currently effective IFRSs have no corresponding SOCPA Accounting Standards
  • 3 SOCPA Accounting Standards have no corresponding IFRSs

IFRS having Direct costing SOCPA Accounting Standards

1. Presentation of Financial Statements (IAS 1)

 2. Inventories (IAS 2)

 3. Construction Contracts (IAS 11)

 4. Income Taxes (IAS 12)

 5. Property, Plant and Equipment (IAS 16)

 6. Leases (IAS 17)

7. Revenue (IAS 18)

8. Accounting for Government Grants (IAS 20)

9. Foreign Currency (IAS 21)

10. Related Party Disclosures (IAS 24)

11. Consolidated and Separate Financial Statements (IAS 27)

12. Investments in Associates (IAS 28)

13. Earnings per Share (IAS 33)

14. Interim Financial Reporting (IAS 34)

15. Impairment of Assets (IAS 36)

16. Intangible Assets (IAS 38)

17. Operating Segments (IFRS 8)

18. Business Combinations (IFRS 3)

 

IFRSs having partial corresponding SOCPA Accounting Standards

1. Cash Flow Statements (IAS 7) SOCPA Accounting Standards

2. Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8)

 3. Events after the Balance Sheet Date (IAS 10)

4. Borrowing Costs (IAS 23)

5. Provisions, Contingent Liabilities and Contingent Assets (IAS 37)

6. Financial Instruments ‐ Recognition and measurement (IAS 39)

7. Non‐Current Assets Held for Sale and Discontinued Operations (IFRS 5)

 

 

 

IFRSs having no corresponding SOCPA Accounting Standard

  1. Employee Benefits (IAS 19)
  2. Accounting and Reporting by Retirement Benefit Plans (IAS 26)
  3. Financial Reporting in Hyperinflationary Economies (IAS 29)
  4. Interests in Joint Ventures (IAS 31)
  5. Financial Instruments ‐ Presentation (IAS 32)
  6. Investment Property (IAS 40)
  7. First‐time Ad i opt on of IFRSs ( S IFR 1)
  8. Insurance Contracts (IFRS 4)
  9. Exploration for and Evaluation of Mineral Resources (IFRS 6)
  10. IFRS 7
  11. IFRS 9

 

SOCPA Accounting Standards having no corresponding IFRS

  • Research and development costs
  • Accounting for Zakat
  • Administrative and marketing expenses