Saudi Arabia’s Capital Market Authority (CMA) has launched a consultation on proposals to expand listed companies’ financial and operational disclosures in annual board reports. The draft would consolidate existing provisions into a dedicated discussion and analysis section and establish minimum content requirements covering performance, financial position, liquidity and material factors expected to affect future results. The section would explain the reasons and drivers behind material changes in financial information relevant to the audited financial statements. Companies would analyze financial and operational performance during the year, including relevant financial and nonfinancial key performance indicators where material. Liquidity, financial solvency, financial position and capital resources would be assessed against the previous financial year. Disclosures would also address material trends, factors and uncertainties expected to affect the company’s business, results and financial position. For Main Market companies, compliance would be mandatory from the first board report issued after the resolution approving the provisions. For Parallel Market companies, the requirements would initially be indicative, becoming mandatory from the first annual board report issued in the year following approval.
Saudi Arabia’s Capital Market Authority consults on expanded financial and operational disclosures in listed companies’ annual board reports
Saudi Arabia’s Capital Market Authority is consulting on a dedicated section in listed companies’ annual board reports analyzing financial and operational performance, financial position, liquidity and material future uncertainties. The proposals would require explanations of material changes, relevant performance indicators and comparisons with the previous financial year. Compliance would begin with the first board report issued after approval for Main Market companies and the first annual board report issued in the following year for Parallel Market companies.