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Articles > CMA Board Decides on Early Adoption of IFRS 18 for Saudi Exchange Listed Companies
CMA Board Decides on Early Adoption of IFRS 18 for Saudi Exchange Listed Companies
By KlickAnalytics Data Insights | June 30, 2026 03:03PM ET
- The Capital Market Authority (CMA) announces its decision for listed joint-stock companies on the Saudi Exchange (Tadawul) to early adopt IFRS 18 "Presentation and Disclosure in Financial Statements".
- IFRS 18 aims to enhance requirements for presentation and disclosure, including financial performance statements, aggregation principles, and management-defined performance measures.
The Capital Market Authority (CMA) has revealed its Board's decision regarding the early adoption of International Financial Reporting Standard No. 18 (IFRS 18) "Presentation and Disclosure in Financial Statements" by listed joint-stock companies on the Saudi Exchange (Tadawul) in 2026. This decision aligns with the Standard's guidelines and aims to improve presentation and disclosure requirements related to various financial aspects. The move showcases the CMA's commitment to assisting listed companies in preparing for the upcoming mandatory application of IFRS 18, set to begin for financial periods starting on or after 1 January 2027.
According to the decision, listed joint-stock companies on the Saudi Exchange (Tadawul) must adhere to International Accounting Standard No. 1 (IAS 1) "Presentation of Financial Statements" for their approved financial statements and publish them through the designated electronic systems. While the mandatory application of IFRS 18 is scheduled to start from 1 January 2027 onward, companies have the option to early adopt the Standard by announcing financial statements prepared in compliance with IFRS 18 during 2026. Additionally, companies are required to disclose the expected impact of applying IFRS 18 in their financial statements for periods starting on or after 1 April 2026.
The CMA stresses the importance of continuous monitoring by company Boards of Directors to ensure compliance with IFRS 18 once it becomes effective. Listed joint-stock companies on the Saudi Exchange (Tadawul) are obligated to follow the Rules on the Offer of Securities and Continuing Obligations issued by the CMA's Board to meet regulatory requirements. This proactive approach by the CMA aims to facilitate a seamless transition for companies towards the adoption of IFRS 18, enhancing financial reporting and transparency in the Saudi market.
- IFRS 18 aims to enhance requirements for presentation and disclosure, including financial performance statements, aggregation principles, and management-defined performance measures.
The Capital Market Authority (CMA) has revealed its Board's decision regarding the early adoption of International Financial Reporting Standard No. 18 (IFRS 18) "Presentation and Disclosure in Financial Statements" by listed joint-stock companies on the Saudi Exchange (Tadawul) in 2026. This decision aligns with the Standard's guidelines and aims to improve presentation and disclosure requirements related to various financial aspects. The move showcases the CMA's commitment to assisting listed companies in preparing for the upcoming mandatory application of IFRS 18, set to begin for financial periods starting on or after 1 January 2027.
According to the decision, listed joint-stock companies on the Saudi Exchange (Tadawul) must adhere to International Accounting Standard No. 1 (IAS 1) "Presentation of Financial Statements" for their approved financial statements and publish them through the designated electronic systems. While the mandatory application of IFRS 18 is scheduled to start from 1 January 2027 onward, companies have the option to early adopt the Standard by announcing financial statements prepared in compliance with IFRS 18 during 2026. Additionally, companies are required to disclose the expected impact of applying IFRS 18 in their financial statements for periods starting on or after 1 April 2026.
The CMA stresses the importance of continuous monitoring by company Boards of Directors to ensure compliance with IFRS 18 once it becomes effective. Listed joint-stock companies on the Saudi Exchange (Tadawul) are obligated to follow the Rules on the Offer of Securities and Continuing Obligations issued by the CMA's Board to meet regulatory requirements. This proactive approach by the CMA aims to facilitate a seamless transition for companies towards the adoption of IFRS 18, enhancing financial reporting and transparency in the Saudi market.
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