Global Standards for the world economy

Sunday 28 February 2021

Banner graphic

Press Releases

Saudi Arabia to publish IFRS Standards for adoption purposes

 15 November 2016

Saudi Arabia has announced its intention to incorporate IFRS Standards into its legal framework by signing a licence agreement with the IFRS Foundation. The agreement gives the Saudi Organization for Certified Public Accountants (SOCPA) the right to publish the official Arabic translation of IFRS Standards and the IFRS for SMEs Standard for the purpose of adoption into law.

The agreement is an important part of Saudi Arabia’s efforts to adopt and implement IFRS Standards. Banks and insurance companies are already required to use IFRS Standards, with listed companies following suit in 2017. Other companies will be required to use the IFRS for SMEs Standard from 2018.  

IFRS Standards are now required by more than 120 jurisdictions around the world and permitted in many more. A licence agreement is required for a jurisdiction to reproduce the text of the Standards, which is the IFRS Foundation’s intellectual property, and a key step in that jurisdiction’s process to adopt the Standards.

Hans Hoogervorst, Chairman of the International Accounting Standards Board, said:

The licence agreement is an important part of Saudi Arabia’s process to adopt IFRS Standards. Saudi Arabia’s requirement for listed companies to use the Standards from 2017 means that they are now required by three quarters of the G20 countries.

Related information