Transition to accrual accounting develops effective financial policies, says Al-Jadaan

Saudi Arabia’s adoption of the accrual basis accounting program aims to play an effective role in providing financial data that help measure performance, analyze gaps and seize available opportunities in light of financial performance, Mohammed Al-Jadaan, Minister of Finance, said.

The Kingdom’s transition from cash to accrual accounting was not just a technical requirement. It will help develop effective financial policies.

In addition, the successful shift will allow the company to have an integrated financial system, based on unified accounting standards, Al-Jadaan added.