The Kuwait Capital Markets Authority issued a Disciplinary Board decision imposing a financial penalty of KD 10,000 on National Investments Company for breaching its business ethics requirements through non-compliance with international accounting standards in the preparation and approval of valuation reports. The breach relates to Article 8-4 (paragraph 4) of Book Eight (Business Ethics) of the Executive Bylaws of Law No. 7 of 2010, as amended. The authority cited failures to apply IAS 36 and IFRS 13, including omissions of key inputs, indicators and fundamental assumptions used by market participants, particularly risk assumptions. The valuation report also did not properly reflect material changes in an associate’s position, its future cash flows and adverse circumstances, including in calculating the present value of use. Where fair value measurement was used and the present value of use was lower than the carrying value, the report should have used the declared market price as the main input with any justified adjustment, but it ignored the announced market price contrary to fair value measurement requirements.
Kuwait Capital Markets Authority 2026-01-12
Kuwait Capital Markets Authority fines National Investments Company KD 10,000 for IAS 36 and IFRS 13 valuation report breaches
The Kuwait Capital Markets Authority imposed a KD 10,000 penalty on National Investments Company for breaching business ethics by failing to comply with international accounting standards in valuation reports, specifically IAS 36 and IFRS 13. The violations included omissions of key inputs and assumptions, improper reflection of material changes, and failure to use declared market prices in fair value measurements.