Saudi Electricity Company in third phase of International Accounting Standards transition plan

Saudi Electricity Company (SEC) recently reported its progress in the third phase of its International Accounting Standards (IAS) transition plan.

SEC said there are five parts to the transition plan in a recent release.

SEC said that most of the transition requirements were completed as of Jan. 1. It said that the Consolidated Statement of Financial Position of opening balances was prepared in January 2016, while the consolidating of financial statements for the first half of last year is under review by an external auditor.

Third, SEC said a few important impacts of the new system, namely that the consolidation plan, resulted in joint operations for independent production companies and that the implementation has led to an increase in deferred government grants.

Fourth, SEC said there are currently no obstacles facing the company as it prepares its financial statements according to international standards.

Lastly, SEC confirmed that it implemented the IAS on Jan. 1 and that its financial statements are properly prepared for the year’s first quarter.