KPMG in Saudi Arabia announced today that it will be holding its annual IFRS update workshop led by KPMG IFRS specialists from their regional office.
The workshop addresses the important amendments taking place on the International Financial Reporting Standards. The event is set to take place in all three major cities such as Khobar 30th of November, Riyadh 3rd of December and Jeddah on the 5th of December.
KPMG believes that in the current environment changes to the standard is believed to be the right approach as the standard retains a mixed measurement model, with some financial assets measured at amortized cost and others at fair value. Retaining but simplifying the mixed measurement model was an important recommendation of the Financial Crisis Advisory Group.
The training also addresses the distinction between the two measurement models which is based on the business model of each entity and a requirement to assess whether the cash flows of an individual instrument are only principal and interest. This business model approach is a fundamental building block of the new standard and aims to align the accounting with the way that management deploys assets in its business, while also considering the characteristics of the assets. The standard addresses at present only financial assets.
KPMG specialists will communicate on how this change in scope reflects the complexities of some of the issues around liability measurement, including the re-measurement of own credit risk and embedded derivatives. While addressing financial assets and liabilities separately is not ideal, but KPMG believes that the Board has made a sensible decision pending further discussion on these issues.
Yusuf Hassan, Director – Department of Professional Practice (DPP), who is the main speaker at the event notes “ Early adoption will be a big step for any entity.” The event is a whole day workshop in which allows interaction between finance professionals and KPMG specialists to have an open dialogue with potential affects and how to take on the transaction phase.
Abdullah Al Fozan, KPMG in Saudi Arabia’s Chairman adds “ we truly believe in taking market initiatives in spreading the knowledge, we see ourselves as partners to our clients and markets.” He continues by saying: “Providing IFRS awareness training for all affected employees is absolutely essential, to give an overall appreciation of how the new standards can impact them and their company. Naturally, different groups will have varying requirements”.
“The project’s executive stakeholders, for example, will want a high level overview, whereas financial reporting staff will need more technical detail. And you’ll have to consider many other groups within Finance; such as those in analytical roles, whose “market facing” outputs may change considerably. Ultimately, finance professionals should always consider IFRS awareness training as an essential part of their ongoing professional development. Companies, however, rarely consider the implications for the far broader spectrum of people across the organization”.