IFRS 18 for Companies on Tadawul's Main Market: The First IFRS 18 Statements Are a Quarterly Report Due Within 30 Days, With the Comparative Quarter Restated
For a calendar-year company on the Saudi Exchange's Main Market, the first IFRS 18 statements are not the 2027 annual report but the first-quarter interims, due by 30 April 2027, with the first quarter of 2026 restated and reconciled line by line. The Capital Market Authority's decision of 30 June 2026, the impact note it requires, what early adoption means in the Kingdom, and a dated plan for the months in between.
For a company listed on the Main Market of the Saudi Exchange (Tadawul) with a 31 December year end, the first IFRS 18 statements it must publish are not the 2027 annual report but the first-quarter interims, due by 30 April 2027. They must restate the first quarter of 2026 and reconcile every income statement line to the IAS 1 figures, and by the annual report, eleven months later, the company will have done that three times.
The Capital Market Authority's decision of 30 June 2026 adds an impact note in approved statements since the second quarter of 2026 and an early adoption route that means reporting twice. Below, every date to the first IFRS 18 annual report in early 2028. (IFRS 18 is not IAS 18 Revenue, which IFRS 15 replaced.)
Why the first IFRS 18 statements of a Saudi listed company are a quarterly report
IFRS 18 applies to annual periods beginning on or after 1 January 2027 (paragraph C1), so every 2027 interim falls under it. Article 66(c) of the Capital Market Authority's Rules on the Offer of Securities and Continuing Obligations requires interims under the standards SOCPA has adopted within 30 days of the period end, and SOCPA endorsed IFRS 18 on 26 December 2024 (25/06/1446H), item 42 of its endorsement document.
Paragraph C4 makes first-year condensed interims show every heading expected in the annual statements and the subtotals in paragraphs 69 to 74, overriding IAS 34 paragraph 10. C5 adds a line-by-line reconciliation for the comparative quarter and the comparative year to date, and IAS 34 paragraph 16A(m) brings the MPM note into the interims. A quarterly filer therefore restates every 2026 interim period before the annual statements add the full-year reconciliation in C3. One statement is worked through in IFRS 18 vs IAS 1: One Saudi Income Statement Restated Line by Line, Where Operating Profit Moves From 230 to 186 and Net Profit Stays at 180.
Quarterly, half-yearly and annual-only reporters
| Calendar-year company | Main Market (quarterly) | Parallel Market (half-yearly) | Unlisted, full IFRS |
|---|---|---|---|
| First IFRS 18 statements | First-quarter 2027 interims | First-half 2027 interims | 2027 annual statements |
| Deadline | 30 April 2027 (Article 66(c)) | 14 August 2027 (45 days, Article 94) | Deposit by 30 June 2028 (Companies Law, Article 17(2)) |
| Comparative reconciled line by line | First quarter of 2026 (C5) | First half of 2026 (C5) | 2026 (C3) |
| 2026 impact note under the decision | From the second quarter | Open: its half-year and year began on 1 January 2026 | Not covered; IAS 8 paragraph 30 applies |
The Companies Law deadline binds every company, listed or not. One on the IFRS for SMEs Standard never applies IFRS 18 (see Full IFRS or IFRS for SMEs in Saudi Arabia); who needs an auditor is in Which Saudi Companies Must Appoint an Auditor.
The Capital Market Authority's decision of 30 June 2026, term by term
Published as announcement CMA_N_4083, the decision binds joint stock companies listed on the Saudi Exchange.
| Term | What the decision says | In practice |
|---|---|---|
| Approved statements | Stay on IAS 1, published through the Saudi Exchange's systems | Every 2026 filing is IAS 1 |
| Early adoption | During 2026 only, by announcing IFRS 18 statements and their effect on the Saudi Exchange website beside the IAS 1 filing | Two sets for one period |
| Impact note | A preliminary assessment of the expected impact, in approved interim and annual statements for periods beginning on or after 1 April 2026 | From second-quarter 2026 interims |
| Mandatory date | Periods beginning on or after 1 January 2027 | First quarter of 2027 |
| Oversight | The board monitors progress continuously; Article 66(c) and (d) apply | 30 days per quarter, three months for the year |
Early adoption is the unusual term. In the UAE, du, Parkin and RAK Ceramics published their 2026 interims under IFRS 18; a Saudi company could only add an IFRS 18 set to its IAS 1 filing. The route closes with 2026, and a search of filings (not exhaustive) found no Saudi company using it.
The Saudi Exchange's results form is untouched: it asks for "Operational Profit (Loss)", which IAS 1 never defined and IFRS 18 does, and "Reclassification of Comparison Items" (Saudi Cement's second-quarter 2026 announcement shows both). No circular changing it has been found.
The dated table: from SOCPA's endorsement to the FY2027 deposit
A Main Market company, 31 December year end, as at 3 November 2026:
| Date | What happens or is due | Rule |
|---|---|---|
| 26 December 2024 | SOCPA endorses IFRS 18; early application permitted | Item 42 |
| 30 June 2026 | Capital Market Authority decision | CMA_N_4083 |
| By 30 July 2026 | Second-quarter interims: first impact note | Decision; Article 66(c) |
| By 30 October 2026 | Third-quarter interims: second impact note | Decision; Article 66(c) |
| 31 December 2026 | Early adoption route closes; comparative year ends | Decision; C1 |
| 1 January 2027 | IFRS 18 mandatory | C1 |
| By 31 March 2027 | 2026 annual statements on IAS 1, at least 21 days before the general assembly, with an impact disclosure | Article 66(d); IAS 8 paragraph 30 |
| By 30 April 2027 | First IFRS 18 statements: first-quarter interims, first quarter of 2026 reconciled, MPM note | Article 66(c); C4, C5; IAS 34 paragraph 16A(m) |
| By 30 July 2027 | Second quarter and first half of 2026 reconciled | C5 |
| By 30 October 2027 | Third quarter and nine months of 2026 reconciled | C5 |
| By 31 March 2028 | 2027 annual statements: 2026 restated and reconciled, MPM note, third balance sheet if paragraph 37 applies | Article 66(d); C3; paragraph 37 |
| By 30 June 2028 | 2027 statements deposited | Companies Law, Article 17(2) |
The third balance sheet is a judgement: paragraph 37 requires it only if the change materially affects the balance sheet at 1 January 2026. A foreign issuer on the Main Market uses IFRS as issued by the IASB (Article 66(g)): same deadlines, no SOCPA modifications.
The impact note, and the question it leaves for FY2026 annual statements
The impact note applies to approved statements "for financial periods beginning on or after 1 April 2026", which catches the second- and third-quarter interims. The 2026 annual period began on 1 January 2026, so a literal reading does not reach those statements. The Capital Market Authority has not said whether it meant to; the annual reports due by 31 March 2027 will show how companies read it.
Either way, IAS 8 paragraph 30 already requires an entity that has not applied an issued standard to disclose that fact and known or reasonably estimable information on its likely impact. A company that has restated its 2026 quarters by March can hardly call it unknown.
Notes so far are mostly qualitative. Lejam Sports' first-half 2026 results announcement is typical: recognition and measurement unchanged, items reclassified, assessment under way. IFRS 18 in Gulf Filings compares fuller ones.
A four-phase plan from November 2026 to the first quarter
No regulator prescribes a plan; this one suits a company that has not started, so phases overlap.
| Phase | When | Work |
|---|---|---|
| 1 | November to December 2026 | Map accounts to categories; decide any specified main business activity; list candidate MPMs from 2026 public communications (paragraph 117); set foreign exchange and derivative policies; find contracts quoting operating profit or EBITDA |
| 2 | December 2026 to February 2027 | Restate 2026 by quarter; build the C5 and C3 reconciliations; draft the MPM note with tax and non-controlling interest effects; draft the IAS 8 paragraph 30 note |
| 3 | February to March 2027 | Audit committee approves judgements; auditor reviews restated quarters; investor relations publishes a restated 2026 quarterly history |
| 4 | April 2027 | First-quarter interims under IFRS 18, by 30 April |
Zakat's category needs no policy choice: SOCPA's text puts it in the Zakat and income taxes category (see IFRS 18 as Endorsed in Saudi Arabia). Contracts take longest (see Loan Covenants and Bonus Plans After IFRS 18).
Questions for the audit committee
The decision asks the board to monitor progress continuously. Six questions make that an agenda item. Which judgements set our operating profit? Does any group entity have a specified main business activity? Which published measures are MPMs, and who owns the list? Which loans, sukuk, bonus plans or dividend policies quote a subtotal that will move? How far will operating profit move, and will restated 2026 quarters be out before the first-quarter results? And where does zakat sit for a parent on IASB IFRS, which awaits the IASB's proposed amendment on taxes that substitute for income taxes (exposure draft expected in the fourth quarter of 2026)?
The rest of the GCC
Elsewhere in the Gulf, IFRS 18 arrives in the IASB's wording, on the IASB's date, with no zakat category.
| Country | How IFRS applies (IFRS Foundation profile) | IFRS 18 guidance, as at November 2026 |
|---|---|---|
| UAE | As issued, on the IASB's effective dates | No regulator guidance found; at least three early adopters |
| Kuwait | As issued, through ministerial decrees, unmodified | Capital Markets Authority Circular No. 9 of 2026, as reported: gap analysis, systems, chart of accounts, training, comparatives |
| Qatar | Required by law, no endorsement step | None found |
| Bahrain | Required by the Commercial Companies Law | None found |
| Oman | Required by law, no endorsement step | None found |
The profiles date from 16 June 2016, and we could not open Kuwait's circular, reported by audit firms in June 2026. A Saudi subsidiary of a Gulf group reports on two texts: SOCPA's locally, the IASB's for the group.
Where to practise this
No exam tests this timeline. The nearest SOCPA Fellowship topics are Financial Accounting subtopic 3/17, interim financial reporting (main topic 3, 25% to 45%), and Laws subtopic 4/2, the Companies Law (main topic 4, 32% to 45%); SOCPA has not announced which cycle first examines IFRS 18. Prepito's Financial Accounting course and Regulations course cover both, with practice questions and full explanations. Related: How SOCPA Endorses IFRS. For the qualification, see the SOCPA Fellowship programme.
Sources: Capital Market Authority announcement (Arabic) and continuing obligations rules; Companies Law; SOCPA's endorsement document, exam topics and guidance framework; IFRS Foundation: IFRS 18, IAS 34, IAS 8, the taxes project and profiles of the UAE, Kuwait, Qatar, Bahrain and Oman; filings of Saudi Cement, du, Parkin and RAK Ceramics. Correct as at 3 November 2026; check for later Capital Market Authority or Saudi Exchange guidance before each filing.
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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:
