IFRS 18 in Gulf Filings: Three UAE Early Adopters Line by Line, and What Saudi Impact Notes Actually Say
Three UAE companies already publish IFRS 18 statements: du in its first-quarter 2026 interims, Parkin and RAK Ceramics in their half-year 2026 interims. Their income statements line by line, the measures they treat as management-defined and what their notes leave out; then what Saudi listed companies wrote in the impact notes the Capital Market Authority requires, from stc to three banks with near-identical text, and a checklist that separates a useful note from boilerplate.
As at November 2026, three listed UAE companies publish income statements under IFRS 18 a year before it is mandatory: du in its first-quarter 2026 interim, RAK Ceramics from its first-quarter 2026 interim and Parkin in its half-year interim. We found no Saudi company that has done the same; under the Capital Market Authority's rule, early adoption in 2026 means announcing a second set of IFRS 18 statements on the Saudi Exchange website while the approved statements stay on IAS 1.
Saudi companies publish instead the preliminary impact assessment that the Capital Market Authority requires in approved interim and annual statements for periods beginning on or after 1 April 2026. We read fourteen companies' notes in interims to 30 June and 30 September 2026. The useful ones name the line that moves and where it goes; the weakest restate the standard. This page sets them beside the UAE filings for the preparer drafting the FY2026 note in January 2027.
Who has adopted IFRS 18 in the Gulf, and who has not
du's statements for the quarter to 31 March 2026 say that "other than early adoption of IFRS 18" no new standard was applied early, under the policies of its 2025 annual statements (note 2(ii), page 6); we cite the quarter only, because we could not open the annual report. Parkin "has early adopted IFRS 18" retrospectively, restating 2025 (note 3.3, pages 8 to 10); RAK Ceramics applies it "from 1 January 2026" (note 31, page 38). All three interims were reviewed, not audited. Other Gulf names circulate in secondary commentary as early adopters; we found no filing showing it, so they are not listed.
The Capital Market Authority's decision, announced on 30 June 2026, keeps approved statements on IAS 1 until periods beginning on or after 1 January 2027 and permits early adoption during 2026 only "by announcing financial statements prepared in accordance with that Standard and the effect of such early adoption" on the Saudi Exchange website. Every Saudi note we read says the company has not adopted early or will adopt on 1 January 2027; our search was not exhaustive.
du, Parkin and RAK Ceramics: the early adopters' statements line by line
| AED thousand | du, first quarter 2026 | Parkin, half-year 2026 | RAK Ceramics, half-year 2026 |
|---|---|---|---|
| Expenses on the face | By nature | By nature | By function |
| Operating profit | 1,478,004 | 405,061 | 173,966 |
| Operating profit, comparative period | 1,274,926 | 335,673 | 182,076 |
| Investing category | Associates (54); interest income 27,160; impairment of associate and deposits (632) | Interest on cash and deposits 8,675 | Investment property rent 21,191, depreciation (5,699), costs (4,303), disposal gain 1,266; associates 405; finance income 1,212 |
| Profit before financing and income tax | 1,504,478 (label adds "federal royalty") | 413,736 | 188,038 |
| Financing category | Interest expense (25,557) | Finance cost (26,786) | Finance cost (49,316) |
| Below financing | Federal royalty (561,990); income tax (82,754) | Income tax (35,573) | Tax (32,194) |
| Profit | 834,177 | 351,377 | 106,528 |
| Extra operating subtotal on the face | Operating profit before depreciation and amortization 2,037,806 | None | Gross profit 637,080 |
| MPM note | None in the quarter | EBITDA 448,467 | Adjusted EBITDA 284,803 |
| Comparative reconciliation | None in the quarter | Line by line, second quarter and half-year 2025 | Each restated line mapped to its IAS 1 caption |
Parkin's reconciliation (note 3.3) shows the whole move for the first half of 2025: finance income of 7,061 went to investing as interest on cash and deposits; "other income" and "other expenses" became "other operating income" (482) and "other individually immaterial operating expenses" (29,658); and two new subtotals appeared, operating profit of 335,673 and profit before financing and income tax of 342,734. Profit stayed at 284,946.
RAK's note 31 shows moves in both directions in the same half. Into operating: a foreign exchange gain of 5,390 from finance income and a derivative fair value loss of 5,977 from finance cost. Out to investing: investment property rent of 22,963 from other operating income, its depreciation (6,387) and running costs (2,960) from administrative expenses, and a disposal gain of 4,501 from other income. Net, 18,117 of investment property income now sits below operating profit.
du's quarter shows the end state. Its UAE federal royalty is 38% of UAE profits before royalty and income tax for 2024 to 2026, with royalty and tax together at least AED 1.8 billion a year (note 14). du presents it after financing, beside income tax, and names it in both subtotal labels above; for the quarter, 561,990 is 38% of 1,478,921. Whether such a charge belongs in the income taxes category is what the IASB's planned amendment on charges that are not income taxes addresses; its exposure draft is expected in the fourth quarter of 2026. SOCPA has already answered the question for zakat: see Accounting for Zakat in Financial Statements.
The measures they call management-defined, and what their notes leave out
Paragraph 118(b) excludes from management-defined performance measures (MPMs) operating profit or loss before depreciation, amortisation and impairments within the scope of IAS 36. du's "operating profit before depreciation and amortization" fits it: note 16 shows the depreciation line also carries impairment of property, plant and equipment and intangibles. The quarter has no MPM note.
Parkin builds EBITDA from profit before financing and income tax, 413,736, plus depreciation and amortisation of 34,731: 448,467. Operating profit plus the same 34,731 gives 439,792, the 118(b) subtotal; the 8,675 difference is interest income, which is why EBITDA is an MPM here. Note 31 gives the purpose, calculation, reconciliation and comparability statement, but no income tax effect for the add-back, which paragraph 123(d) asks for each reconciling item.
RAK Ceramics' "EBITDA adjusted for extra-ordinary gains or losses", 284,803 against 296,402, defines extra-ordinary as gains or losses on selling property, plant, equipment and investment property (6,782). Note 30 reconciles it to profit and to operating profit with different depreciation figures, 107,959 and 102,260; the 5,699 gap is investment property depreciation, in investing. Neither bridge shows tax or non-controlling interest effects, though non-controlling interests take 4,318 of the profit. The new nature note (note 32) gives impairment losses of 10,685, the face's impairment of financial assets; paragraph 83, which binds annual statements rather than condensed interims, asks for IAS 36 impairments, so a reader will ask whether there were none. The tests are worked in Is EBITDA a Management-Defined Performance Measure?
What Saudi impact notes say, decision by decision
| Company | Period, note | What the note commits to | MPMs |
|---|---|---|---|
| stc | Second quarter 2026, note 3 | Early retirement cost "above the Operating Profit"; an operating-and-investing subtotal | Set from 2027 communications |
| SIIG | Half-year 2026, note 2 | Equity-accounted results and murabaha deposit income to investing; benefit finance cost to financing; zakat "in accordance with the requirements applicable in the Kingdom" | None identified |
| SABIC Agri-Nutrients | Half-year 2026, note 2.3 | Subtotal "Income before financing and zakat and income taxes"; bank charges to operating; dividends, associates and murabaha income to investing | None identified |
| Marafiq | Half-year 2026, note 4 | End-of-service interest from cost of revenue and administration to financing; staff housing receivable unwinding to operating | EBITDA expected |
| Riyadh Cables | Half-year 2026, note 6.3 | Deposit income to investing; facility, lease and end-of-service costs to financing; exchange differences to operating | Under review |
| United Electronics | Half-year 2026, note 2.1.4 | Consumer finance a main business activity: murabaha and tawarruq income and its funding cost in operating | EBITDA under review |
| Saudi Networkers | Half-year 2026, note 3.1 | Old and new subtotals tabled, adding "Profit before financing and Zakat"; end-of-service interest to financing | Under review |
| Jarir | Half-year 2026, note 2.1(v) | Parts of "other income" to investing and financing; finance income to investing; end-of-service interest to financing | Not stated |
| Axelerated Solutions | Half-year 2026, note 6 | Investment gains, losses and dividends to investing; first IFRS 18 interim: quarter to 31 March 2027 | Under review |
| Jamjoom Fashion | Nine months to 30 June 2026, note 2 | Areas listed; quantitative effect "not yet been finalised" | None identified |
| Saudi Re | Half-year 2026, note 3 | Describes the standard; one sentence breaks off | Defined only |
Three patterns stand out. Six of the fourteen companies write zakat into the category or a subtotal label; SOCPA's endorsed labels are the "Zakat and income taxes category" and "profit or loss before financing and Zakat and income taxes" (IFRS 18 as Endorsed in Saudi Arabia). End-of-service interest moving to financing is the commonest line-level decision, and it raises operating profit wherever that interest sat in cost of revenue or administration (End-of-Service Benefits in Saudi Arabia). And no Saudi note we read gives an amount.
Saudi banks: one template, three banks
SAB, Bank AlJazira and GIB Saudi Arabia filed second-quarter notes that share whole sentences. Each "concluded that providing financing to customers and investing in financial assets as part of its banking activities constitute specified main business activities"; each expects financing income and funding costs in operating, equity-accounted results in investing, and lease interest and "the interest cost of employee benefit obligations" in financing; each is assessing "net operating income before impairment provision" as an MPM. Identical conclusions are plausible for banks with one business model; identical sentences do not show which bank did the work.
SAB's nine-month note, the only third-quarter note we opened, moved on: special commission income split on the face between financing and investments, depreciation and amortisation shown separately, leftovers labelled "other individually immaterial", and all special commission paid and received in operating cash flows, because the expense sits in more than one category. That note commits to decisions.
A useful impact note against boilerplate: a checklist
Read literally, the Capital Market Authority's rule reaches every interim from the second quarter of 2026 but not a calendar-year company's FY2026 annual statements, whose period began on 1 January. IAS 8 paragraph 30 closes the gap by requiring "known or reasonably estimable information" on the possible impact of a standard not yet applied. Annual statements are due within three months (Article 66(d) of the Rules on the Offer of Securities and Continuing Obligations); the first IFRS 18 statements, the first-quarter 2027 interims, within 30 days (66(c)), reconciling the comparative quarter line by line (paragraph C5; see IFRS 18 for Companies on Tadawul's Main Market). ESMA, the EU securities regulator, asks for entity-specific information on IFRS 18's expected impact in 2026 statements, which "may include explanations on quantitative changes to the presentation of the statement of profit or loss", main business activities and expected MPMs.
| Test | Boilerplate | Copy this |
|---|---|---|
| Main business activity | "The Group is assessing" | The conclusion, either way: SAB, United Electronics, Marafiq |
| Lines that move | The five categories restated | Each line, from where to where: Marafiq, Riyadh Cables |
| Amounts | None | The 2026 amount per line, in Parkin's reconciliation format |
| Labels | IASB subtotal names | SOCPA's zakat labels: SABIC Agri-Nutrients, United Electronics |
| MPMs | Paragraph 117 restated | The candidate measure by name: Marafiq, SAB |
| Cash flows | "Changes are expected" | The classification stated: SAB, SABIC Agri-Nutrients |
| Timing | The effective date | The first IFRS 18 report: Axelerated Solutions |
Then proofread: Saudi Re's note went out with a sentence that breaks off. For the categories themselves, see Operating, Investing or Financing Under IFRS 18.
Where to practise this
No exam sets company filings, but SOCPA's Financial Accounting syllabus lists presentation of financial statements (1/1/10) and interim financial reporting (3/17), and SOCPA has not announced which cycle first examines IFRS 18. Prepito's Financial Accounting course covers that paper with practice questions and full explanations, and IFRS 18 vs IAS 1 restates one Saudi income statement line by line. For the qualification as a whole, see the SOCPA Fellowship programme.
Sources: interim statements of du, Parkin, RAK Ceramics (half-year, first quarter), stc, SAB (second quarter, nine months), Bank AlJazira, GIB Saudi Arabia, SIIG, SABIC Agri-Nutrients, Marafiq, Riyadh Cables, United Electronics, Saudi Networkers, Jarir, Axelerated Solutions, Jamjoom Fashion and Saudi Re; the Capital Market Authority's announcement and Rules on the Offer of Securities and Continuing Obligations; IFRS 18, text as in AASB 18; IAS 8; the IASB project on charges that are not income taxes; SOCPA's endorsement document; ESMA's 2026 enforcement priorities. Filings as at 3 November 2026: third-quarter notes and the FY2026 annual reports will add to these positions and may change them.
Try 5 questions on this material
Question 1 of 5
An entity has two classes of inventory at year end that it values item by item. The first class has a cost of 180,000 riyals and a net realisable value of 195,000 riyals, and the second class has a cost of 240,000 riyals and a net realisable value of 220,000 riyals. The inventory amount that appears in the statement of financial position is:
