Saudi Electricity sees higher retained earnings after IFRS adoption

16/03/2017 Argaam

Saudi Electricity Co. (SEC) reported a SAR 1.3 billion increase in its retained earnings after implementing the International Financial Reporting Standards (IFRS), the Gulf’s largest utility said in a statement to Tadawul on Thursday.

 

The higher retained earnings are attributed to an increase of SAR 6.02 billion in the net book value of fixed assets.

 

However, retained earnings were hurt by a decline of SAR 3.7 billion and SAR 1.04 billion in the net government grants and the provision for the end-of-service benefits, respectively.

 

SEC added that it expects a positive impact on fixed-asset amortization costs over the coming period, due to the recalculation of the useful life of fixed assets, explaining that the company’s cash flows would not be affected.

 

The company’s first IFRS-compliant financial results will be issued for Q1-2017, the statement added.

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