The Capital Market Authority announces Allowing Investment Fund Managers to use the Fair Value Model or the Revaluation Model to measure Property and Investment Property for the fiscal periods for the fiscal year beginning in 2023
Monday, February 22, 2021 at 4:01 PM
Mon Feb 22, 2021 16:01
Reference to the Capital Market Authority ("the Authority") Board of Commissioners resolution dated 16/09/1438H corresponding to 12/06/2017G, which obligated investment fund managers to Apply the cost model to measure the property, plant, equipment, investment property, and intangible assets upon preparing IFRS Financial Statements. The resolution indicated that the Authority will analyze the feasibility of continuing to apply the cost model after three years from the date of this resolution.
Based on the Authority’s role in regulating and monitoring the works and activities of parties subject to the monitoring and supervision of the Authority, and its role in regulating and monitoring the full disclosures of information regarding financial securities and their issuers, the Authority announces the Board of Commissioners resolution, which includes the following:
(A) Obligating investment fund managers to continue to use the cost model to measure property and investment property in the financial statements prepared for financial periods within fiscal years starting during the calendar year 2023 or thereafter.
(B) Allowing investment fund managers to use the fair value model or the revaluation model to measure property and investment property in the financial statements prepared for financial periods within fiscal years starting during the calendar year 2023 or thereafter.
(C) Obligating investment fund managers to continue to use the cost model to measure plant, equipment and intangible assets for five years starting from 01/01/2021, The Authority will study the appropriateness of continuing to use the cost model or allowing the use of fair value model or the revaluation model when this period ends.