SOCPA participates in the semi-annual periodic meeting of the Group of Emerging Economies of the G20

The Saudi Organization for Chartered and Professional Accountants participates in the semi-annual periodic meeting of the Group of Emerging Economies of the G20 of the International Accounting Standards Board during the period 7 - 8 May 2025 via video call

 

The Saudi Organization for Chartered and Professional Accountants, represented by its Accounting Standards Board, participated in the semi-annual meeting of the Group of Emerging Economies from the G20 countries affiliated with the International Accounting Standards Board, which was held via video call during the period May 7-8, 2025.  SOCPA was represented at that meeting by the Executive Director of Professional Standards, Dr. Abdul Rahman Al-Razeen.

The participants discussed a number of developments and draft international standards, including planning the fourth phase of the consultation schedule on the future work of the International Board and setting its priorities. One of the suggested topics was to develop a basis for the report in the event that the facility ceased to be a going concern. The representative of the Saudi Organization for Chartered and Professional Accountants pointed out that the organization has developed an integrated framework for the liquidation basis and made it available on its website in Arabic and English. The representative of the Mexican Organization praised the SOCPA's standard and stated that Mexico had developed a similar framework, and the Saudi Organization's framework was the basis for that project.

At that meeting, representatives of the International Board presented the new version of the International Financial Reporting Standard for Small and Medium Enterprises, which will be implemented starting from the beginning of 2027. The representative of the Saudi Organization for Chartered and Professional Accountants commented on that, appreciating the International Board for accepting and adopting the Organization's point of view regarding how to account for end-of-service benefits. At the same time, he pointed out that some of the simplifications contained in the standard were merely an abbreviation and summary of the requirements contained in the full version of the international standards, and such a summary does not achieve the goal of simplification, as he provided examples from the standard showing that the requirements can only be understood by referring to the full text in the full version of the international standards.

Among the topics presented at that meeting was the draft presentation and disclosure of financial instruments that have characteristics of the equity, and among the suggestions was that the profit or loss of each equity instrument be presented in the income statement. The organization's representative pointed out that some Islamic finance instruments share profit and loss, as this is the return on those instruments, despite their classification as liabilities in accordance with the requirements of International Accounting Standard No. 32. A suggestion was made to consider that the profit and loss list include a presentation of the profit or loss attributable to each instrument provided for financing and participating in profit and loss.

The meeting's working papers and the final report can be viewed by visiting the group's page on the International Board's website by clicking here.