Saudi Arabia- The Saudi Capital Market Authority (CMA) on Monday informed that it will allow investment fund managers to use the fair cost or revaluation model to count property and investment property for the 2023 revenue year and further.
The authority’s board of commissioners provided a resolution on June 6, 2017, accommodating investment fund managers to apply the cost model to calculate the property, plant, equipment, investment property, and impalpable assets when preparing International Financial Reporting Standards (IFRS) statements.
At the time, it showed that the CMA would calculate the practicability of resuming to apply the cost model after three years.
In a record, the authority provided that its board of commissioners had marked that investment fund managers could carry on to use the model to account properties and investment property in financial statements accounted for financial periods within the financial year beginning before 2023.
The fair value model or the revaluation model could be used for financial periods within the financial years right from 2023, or thereafter, and the cost model would be provided to calculate plant, equipment, and impalpable assets for five years starting from early 2021, values to review at the end of the five-year duration.
