Saudi Arabia's Capital Market Authority has issued a board decision allowing listed joint-stock companies on the Saudi Exchange to early adopt IFRS 18 Presentation and Disclosure in Financial Statements during 2026. Mandatory application will still begin for financial reporting periods starting on or after 1 January 2027. The move gives issuers a transition window for the new presentation and disclosure standard, which covers the statement of financial performance, aggregation and disaggregation principles, and management-defined performance measures. During 2026, companies that choose early adoption may announce financial statements prepared under IFRS 18 and disclose the effect of that adoption on the Saudi Exchange website. However, they must continue to prepare their approved financial statements under IAS 1 Presentation of Financial Statements and publish those through Tadawul's designated electronic systems to meet statutory disclosure requirements. In addition, listed companies must disclose a preliminary assessment of the expected impact of first-time application of IFRS 18 in their approved interim and annual financial statements for financial periods beginning on or after 1 April 2026. The authority also said boards of directors should continuously monitor the company's progress toward compliance with IFRS 18 when it becomes effective. Listed companies remain subject to paragraphs (c) and (d) of Article 66 of the Rules on the Offer of Securities and Continuing Obligations, as amended.

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