Logo ofCapital Market Authority (CMA)
The Capital Market Authority (CMA) announced its board’s decision on the early adoption of International Financial Reporting Standard No. (18) “Presentation and Disclosure in Financial Statements” (IFRS 18) by listed joint-stock companies on the Saudi Exchange (Tadawul) during 2026, in accordance with what the Standard permits. 
IFRS 18 “Presentation and Disclosure in Financial Statements”, issued by the International Accounting Standards Board (IASB) on 9 April 2024 and locally adopted by the Saudi Organization for Chartered and Professional Accountants (SOCPA) on 26 December 2024, aims to enhance the requirements for presentation and disclosure and information related to the following matters: the statement of financial performance (primary and sub-totals), aggregation and disaggregation principles, and management-defined performance measures, the regulator said.
This decision stems from CMA’s role in regulating and monitoring the activities and operations of entities subject to its oversight and supervision, and reflects its commitment to supporting listed joint-stock companies on Tadawul in preparing for the early adoption of the new standard, thereby contributing to a seamless transition when the mandatory application of the standard commences for financial periods beginning on or after 1 January 2027.
Pursuant to the decision, Tadawul listed joint-stock companies are required to continue preparing their approved financial statements in accordance with the requirements of International Accounting Standard No. (1) (IAS 1) “Presentation of Financial Statements” and publishing them through the electronic systems designated for this purpose by Tadawul. The mandatory application of IFRS 18 shall commence for financial reporting periods beginning on or after 1 January 2027.
Listed joint-stock companies may early adopt IFRS 18 during 2026 by announcing financial statements prepared in accordance with that standard and the effect of such early adoption on Tadawul website, while continuing to prepare approved financial statements in accordance with the requirements of IAS 1 “Presentation of Financial Statements” and publishing them through the electronic systems designated for this purpose by Tadawul to fulfill the statutory financial disclosure requirements.
The decision also requires listed joint-stock companies to disclose a preliminary assessment of the expected impact of the initial application of IFRS 18 in their approved financial statements, for interim and annual financial statements prepared for financial periods beginning on or after 1 April 2026.
CMA further emphasized the importance of the company’s board of directors continuously monitoring updates related to the company’s progress toward compliance with the application of IFRS 18 when it becomes effective, and the obligation of listed joint-stock companies to comply with paragraphs (c) and (d) of Article 66 of the Rules on the Offer of Securities and Continuing Obligations.
Logo ofCapital Market Authority (CMA)
The Capital Market Authority (CMA) announced its board’s decision on the early adoption of International Financial Reporting Standard No. (18) “Presentation and Disclosure in Financial Statements” (IFRS 18) by listed joint-stock companies on the Saudi Exchange (Tadawul) during 2026, in accordance with what the Standard permits.
IFRS 18 “Presentation and Disclosure in Financial Statements”, issued by the International Accounting Standards Board (IASB) on 9 April 2024 and locally adopted by the Saudi Organization for Chartered and Professional Accountants (SOCPA) on 26 December 2024, aims to enhance the requirements for presentation and disclosure and information related to the following matters: the statement of financial performance (primary and sub-totals), aggregation and disaggregation principles, and management-defined performance measures, the regulator said.
This decision stems from CMA’s role in regulating and monitoring the activities and operations of entities subject to its oversight and supervision, and reflects its commitment to supporting listed joint-stock companies on Tadawul in preparing for the early adoption of the new standard, thereby contributing to a seamless transition when the mandatory application of the standard commences for financial periods beginning on or after 1 January 2027.
Pursuant to the decision, Tadawul listed joint-stock companies are required to continue preparing their approved financial statements in accordance with the requirements of International Accounting Standard No. (1) (IAS 1) “Presentation of Financial Statements” and publishing them through the electronic systems designated for this purpose by Tadawul. The mandatory application of IFRS 18 shall commence for financial reporting periods beginning on or after 1 January 2027.
Listed joint-stock companies may early adopt IFRS 18 during 2026 by announcing financial statements prepared in accordance with that standard and the effect of such early adoption on Tadawul website, while continuing to prepare approved financial statements in accordance with the requirements of IAS 1 “Presentation of Financial Statements” and publishing them through the electronic systems designated for this purpose by Tadawul to fulfill the statutory financial disclosure requirements.
The decision also requires listed joint-stock companies to disclose a preliminary assessment of the expected impact of the initial application of IFRS 18 in their approved financial statements, for interim and annual financial statements prepared for financial periods beginning on or after 1 April 2026.
CMA further emphasized the importance of the company’s board of directors continuously monitoring updates related to the company’s progress toward compliance with the application of IFRS 18 when it becomes effective, and the obligation of listed joint-stock companies to comply with paragraphs (c) and (d) of Article 66 of the Rules on the Offer of Securities and Continuing Obligations.
