Expert IFRS Advisory & Accounting Services

There are three types of share-based payment transactions: equity-settled, cash-settled, and optionally-settled. Equity-settled transactions occur when an entity receives goods or services and settles the payment by issuing equity instruments like shares or share options.

Understanding these distinctions helps maintain compliance with IFRS Consulting guidelines and ensure precise financial reporting standards.

IFRS 2 excludes certain transactions, such as shares issued in a business combination, addressed under IFRS 3, Business Combinations. It also excludes contracts for the purchase of goods under IAS 32 and IAS 39. These exclusions help ensure proper categorization and reporting of specific transactions.

IFRS 3 outlines principles for recognizing and measuring items in a business combination. These include identifiable assets acquired, assumed liabilities, and non-controlling interests identified separately from goodwill. This ensures accurate and transparent financial reporting.

Expert guidance from IFRS Consulting can help adhere to these principles, optimize accounting practices, and comply with financial reporting standards.

The measurement period is the time after the acquisition date when the acquirer can adjust provisional amounts recognized in a business combination. This period allows for accurate and complete financial reporting of the acquisition's impact.

Yes, the Saudi Organization for Certified Public Accountants (SOCPA) has approved a transition plan to align national standards with full IFRS. Non-publicly accountable entities must report under IFRS for SMEs, promoting consistency and transparency in financial reporting.

IFRS 9 defines an equity investment as an instrument meeting the definition of an equity instrument in IAS 32, Financial Instruments: Presentation. This includes any contract that represents a residual interest in an entity's assets after deducting liabilities. Besides consultancy of IFRS 9, Prima Consulting also offers a all-in-one IFRS 9 Software that leads to a seamless implementation process.

IFRS 13 defines fair value as the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This "exit price" concept ensures fair value measurements reflect market conditions.

Under IFRS 13, fair value is measured using assumptions that market participants would use when pricing an asset or liability, considering risk. This market-based approach ensures fair value measurements are accurate and relevant.

IFRS 15 requires revenue to be recognized in a way that depicts the transfer of promised goods or services to a customer, reflecting the consideration to which the entity expects to be entitled. This principle ensures timely and accurate revenue recognition.

Revenue is recognized when an entity satisfies a performance obligation by transferring a promised good or service to the customer. This occurs when the customer gains control of the asset, ensuring precise and timely financial reporting.

Saudi Arabia adopted IFRS 16, effective January 1, 2022, which replaces IAS 17. IFRS 16 requires companies to recognize lease assets and liabilities on their balance sheets, enhancing transparency and consistency in lease accounting.

IFRS 16 introduces a single lessee accounting model, requiring lessees to recognize assets and liabilities for leases longer than 12 months, unless the asset is of low value. This model streamlines lease accounting and ensures comprehensive financial reporting. Also, we help clients select IFRS 16 software UAE, Pakistan, Saudi Arabia, among other places to handle lease accounting compliantly..

IFRS 17, adopted in Saudi Arabia, introduces new elements to the insurance industry, improving human and technological resources, enhancing reporting transparency, and fostering a solid regulator-industry relationship. This standard supports robust and transparent insurance contract reporting. Besides consultation, for seamless implementation Prima Consulting also offers a IFRS 17 Software.

An insurance contract under IFRS 17 is defined as one where the issuer accepts significant insurance risk from the policyholder by agreeing to compensate them if a specified uncertain future event adversely affects them. This definition ensures clarity and accuracy when reporting insurance contracts.

IAS 36 states that an asset is impaired if its carrying amount exceeds its recoverable amount. In such cases, the entity must recognize an impairment loss, ensuring the asset's value is accurately reflected in the financial statements.

To calculate an asset's impairment, subtract its fair market value from its carrying value (historical cost minus accumulated depreciation). If the fair market value is less than the carrying value, an impairment loss is recorded for the difference. This method ensures accurate reporting of asset values.

IFRS, or International Financial Reporting Standards, provide a globally recognized framework for preparing and presenting financial statements. These standards ensure financial information is consistent, comparable, and transparent across jurisdictions. Businesses use IFRS services to adhere to international accounting norms, enhance credibility, and facilitate cross-border transactions. For companies operating in Saudi Arabia, the UAE, and Pakistan, adopting IFRS ensures compliance with global financial reporting standards and improves investor confidence.

The five fundamental elements of IFRS financial statements are:

1. Assets: Resources controlled by an entity expected to bring future benefits.
2. Liabilities: Obligations arising from past events that require settlement.
3. Equity: The residual interest in the entity’s assets after deducting liabilities.
4. Income: Increases in economic benefits during a reporting period.
5. Expenses: Decreases in economic benefits during a reporting period.

These elements form the backbone of financial statements, ensuring compliance with IFRS advisory principles.

IFRS stands for International Financial Reporting Standards. Issued by the International Accounting Standards Board (IASB), these standards provide a unified accounting framework to help organizations prepare financial statements that are consistent and comparable across regions.

IFRS is mandatory for public interest entities, including banks, insurance companies (except health insurers), asset management firms, and stock exchanges, along with their subsidiaries. It’s also required for trading companies meeting certain financial criteria. In jurisdictions like Saudi Arabia, the UAE, and Pakistan, IFRS adoption is critical for businesses aiming to align with international financial reporting standards. For tailored support, consider financial advisory services specializing in IFRS adoption challenges.

The four guiding principles of IFRS are:

1. Clarity: Ensuring financial statements are easy to understand.
2. Relevance: Presenting information that influences decision-making.
3. Reliability: Providing accurate and unbiased financial data.
4. Comparability: Allowing stakeholders to evaluate financial performance across entities.

These principles form the foundation of IFRS compliance, promoting transparency in financial reporting.

IFRS 17 demands unprecedented data granularity and a robust, end-to-end auditability across systems. Auditors focus heavily on the integrity of governance, organization, and all new outsourcing contracts. A trustworthy IFRS 17 outsourcing service should prioritize a secure and transparent process.
We accomplish this through integrated, auditable sub-ledger solutions. We use technology to link source data directly to the final accounting entry. This eliminates manual reconciliations and provides an unbroken data lineage. It means you can quickly prove to your auditors that your numbers are not just accurate, but also fully compliant with the standard's detailed requirements.

Transitioning to IFRS 9 requires a structured plan: first perform a gap assessment, design your new policies (classification, impairment, hedge accounting), run parallel testing, validate outputs, and then go live. Our IFRS 9 experts help you execute each of these phases smoothly and ensure consistency with your existing reporting cycle.

Under IFRS 9, the classification depends on two tests: (a) your entity’s business model for managing that asset, and (b) whether the contractual cash flows are “solely payments of principal and interest” (SPPI). If both tests pass, amortised cost or FVOCI may apply; otherwise, the asset goes to FVTPL. Our IFRS 9 advisory can guide you in applying these tests accurately.

One common challenge is that IFRS 9 demands extensive documentation: assumptions, overlays, judgments, scenario weights, model design, etc. To manage this, adopt a standardized documentation framework, ensure traceability from inputs to outputs, and embed documentation tasks in the workflow. Our team offers documentation templates and reviews to support your IFRS 9 implementation.

Assessing SICR involves comparing changes in probability of default (PD), changes in credit metrics, and qualitative indicators. You set thresholds (absolute or relative) and backtest them. If an exposure crosses SICR, it migrates to lifetime ECL. We help you design a robust SICR framework tailored to your portfolios within our IFRS 9 advisory.

Selecting the right IFRS 9 solutions involves ensuring the platform can handle complex impairment calculations and evolving regulatory requirements efficiently. It’s also important that the solution integrates well with your current systems and offers transparent reporting features. Our experienced team can guide you through choosing and implementing robust IFRS 9 solutions tailored to your specific financial reporting needs.

IFRS 9 compliance software is vital because it automates the complex impairment calculations and classification rules, reducing manual errors and ensuring adherence to the latest regulatory updates. Using reliable software also enhances transparency and supports thorough audit trails. Our tailored IFRS 9 compliance software helps organizations streamline their reporting processes efficiently.

IFRS 9 technology solutions provide advisory teams with precise tools to analyze credit risk and impairment accurately, which is essential for regulatory compliance. These solutions offer detailed insights and automated reporting, allowing advisors to guide clients confidently. By utilizing our IFRS 9 technology solutions, advisory services can deliver more reliable and timely financial guidance.

Advisors need to evaluate how well IFRS 9 technology solutions fit a client’s existing infrastructure and whether the software can handle complex impairment models specific to their industry. Scalability and ease of use are also crucial factors. Our experts help advisors identify the best-fit IFRS 9 technology solutions to meet diverse client needs effectively.

IFRS 9 ECL software empowers advisory services with accurate data and automated reporting features that align with IFRS 9 requirements. It allows advisors to offer clients insightful risk analyses and compliance strategies supported by real-time data. Utilizing our IFRS 9 ECL software enhances the effectiveness of advisory recommendations and accelerates decision-making.

Advisory teams should evaluate IFRS 9 ECL software based on its ability to handle complex impairment calculations, scalability, user-friendliness, and integration with existing systems. Vendor support and update frequency are also key factors. Our consultants provide expert evaluations to help you choose the best IFRS 9 ECL software that fits diverse client needs.

Prima Consulting specializes in IFRS 9, IFRS 17, IAS 19, IFRS 13, and related standards for financial reporting compliance. Our IFRS advisory services cover implementation in KSA, UAE, Pakistan, Germany, rest of Europe, rest of Middle East, and additional markets. Teams handle classifications, ECL, and insurance contracts.​​

Prima Consulting offers IFRS advisory for IFRS 9 credit risk, IFRS 13 valuations, IFRS 17 insurance, and IAS 19 employee benefits. You receive end-to-end implementation, training, and compliance support across KSA, UAE, Pakistan, Germany, rest of Europe, rest of Middle East, along with other nations. Services ensure accurate reporting.​​

Prima Consulting guides financial reporting compliance with IFRS standards in KSA, UAE, and Pakistan, Germany, rest of Europe, rest of Middle East through audits, training, and system setups. Risk financial advisory services address local rules. Clients achieve forward-looking accuracy.​

Prima Consulting supports IFRS compliance for regulated entities via gap analysis, model building, and training tailored to insurance and finance sectors. ECL models and reserving align with standards in KSA, UAE, Pakistan, Germany, rest of Europe, rest of Middle East, in addition to other areas. You stay audit-ready.​

Prima Consulting delivers end-to-end IFRS 9 implementations, from asset classification to ECL modeling and hedge accounting. Forward-looking credit risk assessments use EAD, PD, LGD formulas. Rollouts fit KSA, UAE, Pakistan, Germany, rest of Europe, rest of Middle East operations.