IFRS adoption in Kingdom of Saudi Arabia December 217
Contents Introduction 3 Executive summary 5 Effects of IFRS adoption: Effects on retained earnings Effects on assets Effects on liabilities 7 Key IFRS 1 exemptions utilized 11 Early adoption of IFRS 9 and IFRS 15 14 Appendices 16 Disclaimer This document provides a summary of our key observations on the IFRS adoption in KSA. The contents of this document comprise information published by individual companies in Tadawul website. Our analysis is based on the completeness and accuracy of the facts and figures published on Tadawul website. Other than to the extent required for the purpose of this report, this information has not been independently verified. The analysis made in this report are based on the published financial statements of the concerned companies for the first quarter under IFRS ended on 31 March 217. We will not update our report for subsequent changes or modifications to laws, regulations and IFRS.
1 Introduction
Unlisted companies* Listed companies Introduction About this report The International Accounting Standards Board (IASB) is now on track to achieve the vision of one global accounting standard. Adhering to the vision of IASB, the Saudi Organization for Certified Public Accountants (SOCPA) had decided to apply International Financial Reporting Standards as endorsed in Kingdom of Saudi Arabia (referred hereafter as IFRSs) to all listed and unlisted companies. Mandatory dates of transition Date of transition to IFRS Comparative information Reporting date 1 Jan 216 31 Dec 216 31 Dec 217 Date of transition to IFRS Comparative information Reporting date 1 Jan 217 31 Dec 217 31 Dec 218 Unlisted companies have an option to early adopt along with listed companies *Unlisted companies not acting in fiduciary capacity can choose either to apply IFRS for SMEs as endorsed in Kingdom of Saudi Arabia or full set of IFRS. 4 12 Based on the transition date decided by SOCPA, listed companies were required to publish their Q1 financial statements for FY17 in accordance with IFRS. As of 31 December 216, there were 176 listed companies on Tadawul. 123 Banking Diversified financials Insurance REIT Other Sectors 33 4 17 16 Companies in other sectors that had published Q1 results under IFRS Q1 IFRS financial statements not available due to Hijri calendar or other than 31 December year end This report is an analysis of the IFRS adoption by the Kingdom of Saudi Arabia (KSA) based on the Q1 financial statements as of 31 March 217, published on Tadawul by these 17 equity listed companies in fifteen (15) sectors (see Appendix I for detailed description of sectors). The analysis is extended further at the sector level as shown in Appendix VI. 4
2 Executive summary
Executive summary By issuing the Q1 results in IFRS, the listed companies have successfully put their initial step in this transition. It is now time to evaluate the status of IFRS transition and its impact on the overall financial position of the company as well as different sectors based on the published financial statements. This report is evaluating the IFRS adoption in KSA based on the analysis of published financial statements of 17 companies under three focus areas and the major observations are as follows: Effects of IFRS adoption 1 2 Retained earnings decreased for all sectors except Media, Retailing and Utilities. Materials sector had the highest decrease of SAR12,162m (31.6%). Retained earnings: SAR18,116m (12.4%) 3 There is a net increase in the value of asset by SAR2,986m. 5 4 The net increase in liabilities as a result of IFRS adoption is SR17,615m. Appendix VI illustrates certain sector-wise impact of IFRS adoption. Major IFRS 1 exemptions utilized 48 Companies utilized the exemptions Key exemptions utilized are: IFRS 3 (Business combinations) IAS 21 (Cumulative translation differences) IAS 23 (Borrowing costs) IFRIC 4 (Arrangements containing a lease) Early adoption of IFRS 9 and IFRS 15 IFRS 9 IFRS 15 1 Companies 7 Companies These companies belong to consumer durables and apparels, capital goods, energy, material, real estate, retailing and transportation sectors. 6
3 Effects of IFRS adoption Effects on retained earnings Effects on assets Effects on liabilities
Effects of IFRS adoption Retained earnings SAR18,116m at the date of transition Impact on retained earnings (SARm): App. II 7, 35, 3, 15, 1, 5, 773 15, (12,162) Material (2,591) Capital goods (1,598) (1,9) (669) Real estate Food and beverage Telecommunication Utilities (861) Other sectors Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact Asset Liability Other components of equity* 2,986m (App. III) (17,615m) (App. IV) (3,487m) The impact on retained earnings is primarily due to increased liabilities. There was a decrease in retained earnings for all, except media, retailing and utilities sectors. Material sector has the highest impact due to adjustments in Goodwill and PPE. Utilities sector has the highest net increase in retained earnings (SAR773m). IFRS adoption has an insignificant impact on the media, retailing and commercial and professional services sectors. *Adjustments to other components of equity (non-controlling interest, foreign currency translation reserve and other reserves) 8
Effects of IFRS adoption (contd) Impact on assets (SARm) at the date of transition: see App. III for detailed analysis 16,5 15,28 1.5 1. 693 5-5 1, (1,256) (531) (643) 1,5 2, (2,25) 2,5 3, 3,5 4, 8,5 (8,99) Material Real estate Capital goods Telecommunication Other sectors Food & Beverages Utilities PPE Investment in other companies Advances and prepayments Goodwill Other assets s IFRS adoption had a net increase of SAR2,986m on the assets of the companies considered. Utilities sector had the highest net increase and materials sector had the highest net decrease. The following table highlights the net effect on selective categories of assets (all sectors combined). SARm 1 PPE 13,371 2 Advances and prepayments 4,651 3 Investment properties 1,948 4 Investment in other companies (4,288) 5 Goodwill (3,131) 1. Utilities sector has a net increase of SAR16,25m in PPE whereas other sectors generally reported a decrease. 2. Utilities sector has the highest increase in assets of SAR4,974m. Other sectors generally had a decreasing effect in advances and prepayments. 3. Retailing (SAR692m), consumer services (SAR544m) and utilities (SAR539m) sectors had an increase on investment property whereas real estate sector noted a decrease by SAR873m. 4. Utilities (SAR1,965m), material (SAR1,326m) and telecommunication (SAR487m) are the mainly affected sectors of investment in other companies. 5. The entire adjustment in goodwill is related one material sector entity. 9
Effects of IFRS adoption (contd) Impact on liabilities (SARm) at the date of transition: see App. IV for detailed analysis 46,5 14,194 3,5 3,389 2,5 2, 1,5 1, 5 247 88 554 5 (149) 1, (79) 53,5 Real estate Capital goods Other sectors Telecommunications Food and beverages Material Utilities Loans Employee benefits Government grants Other liabilities Payables to liabilities IFRS adoption had increased the liabilities by SAR17,615m in the financial statements of the companies considered. Utilities sector had the highest net upward movement and real estate sector had the highest downward movement. The following table highlights the net effect on different categories of liabilities (all sectors combined). SARm 1 Government grants 46,91 2 Loans 9,15 3 Other liabilities 5,53 4 Employee benefits 5,9 5 Payables (49,998) 1. Utilities sector has an increase of SAR46,35m in government grants due to reclassification from long-term governmental payables of SAR42,346m of an entity. 2. Utilities sector has the highest impact of SAR8,683m along with telecommunication (SAR1,294m). Loans in material sector reduced by SAR1,42m. 3. Utilities sector marked the highest increase in other liabilities (SAR12,48m) whereas other sectors reported a reduction in general. 4. Majority of sectors marked an increase in employee benefits and material sector has a considerable increase by SAR3,738m. 5. Decrease in payables was mainly contributed by utilities sector (SAR53,372m). 1
4 Major IFRS 1 exemptions utilized
Major IFRS 1 exemptions utilized 48 companies used exemptions IFRS 1 lists some optional exemptions which companies can use during their first time transition to IFRS. Forty-eight companies used these exemptions. One entity in telecommunication sector used the maximum number of exemptions (six). Most of the companies had used exemption for IFRS 3 Business Combinations (33 companies). Optional exemptions utilized 1 11 IFRS 2 (Share-based payments) 3 IFRS 3 (Business combinations) 4 33 IFRS 9 / IAS 39 (Financial instruments) IAS 16 (Assets deemed cost) 13 IAS 21 (Cumulative translation differences) IAS 23 (Borrowing costs) IAS 28 (Group, subsidiary, associate and joint venture transition dates) IFRIC 1 (Decommissioning liabilities) 13 8 4 IFRIC 4 (Arrangements containing a lease) The numbers represent the number of companies using the respective exemptions 12
Major IFRS 1 exemptions utilized (contd) Sector-wise analysis (exemptions utilised) 12 11 1 9 8 7 6 5 4 3 2 1 Material Capital goods Consumer services Telecommunication Other sectors IFRS 3 IAS 16 IAS 21 IAS 23 IFRIC 4 Other exemptions All sectors utilized the exemptions except the commercial and professional services sector. Materials sector utilized the maximum number of exemptions as an individual sector (28 exemptions by 15 companies). The exemptions for IFRS 3 (business combinations) was utilized by most of the companies and the least utilized exemption was IFRS 2 (share-based payments). For a detailed analysis of IFRS 1 exemptions utilized, refer Appendix V. Sector-wise analysis (number of companies) 39 32 15 12 11 18 6 4 6 3 7 2 Material Capital goods Health care equipment & services No:of Companies used exemption Real estate Food & beverages Other sectors Total no: of companies 13
5 Early adoption of IFRS 9 and IFRS 15
Early adoption of IFRS 9 and IFRS 15 IFRS 9 IFRS 15 1 companies 7 companies In May 214,the IASB issued IFRS 15 Revenue from Contracts with Customers that will supersede virtually all revenue recognition requirements under IFRS and become effective from 1 January 218 with early adoption permitted. In July 214, the IASB issued IFRS 9 Financial Instruments, replacing IAS 39 Financial Instruments: Recognition and Measurement. The standard is effective for annual periods beginning on or after 1 January 218, with early adoption permitted. The companies which early adopted IFRS 9 belongs to consumer durables and apparels, capital goods, energy, material, real estate, retailing and transportation sectors. IFRS 15 has been early adopted by companies in the consumer durables and apparels, capital goods, material, real estate and transportation sectors. 15
6 Appendices
Index I Sector description 18 II Retained earnings analysis 21 III Assets analysis 22 IV Liabilities analysis 23 V Exemptions utilized 24 VI 25 17
Appendix I Sector description Tadawul s market structure is classified based on the Level 2 classification under Global Industry Classification Standard (GICS)*. The details of the sectors considered for the analysis are given in the alphabetical order here: Capital goods (12 companies) It consists of: Aerospace and defense Building products Construction and engineering Electrical equipment Industrial conglomerates Machinery Trading companies and distributors Electrical equipment includes: electrical components and equipment, heavy electrical equipment. Machinery includes: Construction machinery and heavy trucks, agricultural and farm machinery, and industrial machinery. Commercial and professional services (1 company) It consists of: Commercial services and supplies Professional services Commercial services and supplies includes: commercial printing, environmental and facilities services, office services and supplies, diversified support services, and security and alarm services. Professional services includes human resource and employment services, research and consulting services. Consumer durables and apparel (4 companies) It consists of: Household durables Leisure products Textiles, apparel and luxury goods Household durables includes: commercial printing, environmental and facilities services, office services and supplies, diversified support services, and security and alarm services. Professional services includes human resource and employment services, and research and consulting services. Consumer services (5 companies) It consists of: Hotels, restaurants and leisure Diversified consumer services Hotels, restaurants and leisure includes: casinos and gaming, hotels, resorts and cruise lines, leisure facilities and restaurants. Diversified consumer services include education services and specialized consumer services. *The Global Industry Classification Standard (GICS) is an industry taxonomy developed in 1999 by MSCI and Standard & Poor's (S&P) for use by the global financial community. 18
Appendix I (contd) Sector description Energy (4 companies) It consists of: Energy equipment and services Oil, gas and consumable fuels Energy equipment and services includes: oil and gas drilling, oil and gas equipment and services. Oil, gas and consumable fuels includes integrated oil and gas, oil and gas exploration and production, oil and gas refining and marketing, oil and gas storage and transportation, and coal and consumable fuels. Food and beverages (11 companies) It consists of: Beverages Food products Tobacco Beverages includes: brewers, distillers and vintners, and soft drinks. Food products includes agricultural products, and packaged foods and meats. Food and staples retailing (4 companies) It includes: drug retail, food distributors, food retail, and hypermarkets and super centers. Health care equipment and services (6 companies) It consists of: Health care equipment and supplies Health care providers and services Health care technology Pharmaceuticals Life sciences tools and services Health care equipment and supplies includes: health care equipment and health care supplies. Health care providers and services includes health care distributors, health care services, health care facilities and managed health care. Materials (39 companies) It consists of: Chemicals Construction materials Containers and packaging Metals and mining Paper and forest products Chemicals includes: commodity chemicals, diversified chemicals, fertilizers and agricultural chemicals, industrial gases and specialty chemicals. Containers and packaging includes metal and glass containers and paper packaging. Metals and mining includes aluminum, diversified metals and mining, copper, gold, precious metals and minerals, silver and steel industries. Paper and forest products includes forest products and paper products. 19
Appendix I (contd) Sector description Media (1 company) Media includes: advertising, broadcasting, cable and satellite, movies and entertainment, and publishing. Real estate (7 companies) It includes: diversified Real estate activities, real estate operating companies, real estate development and real estate services. Retailing (5 companies) It consists of: Distributors Internet and direct marketing retail Multiline retail Specialty retail Multiline retail includes: department stores and general merchandise store. Specialty retail includes apparel retail, computer and electronics retail, home improvement retail, specialty stores, automotive retail and home furnishing retail. Telecommunication services (3 companies) It consists of: Diversified telecommunication services Wireless telecommunication services Diversified telecommunication services includes: alternative carriers and integrated telecommunication services. Transportation (3 companies) It consists of: Air freight and logistics Airlines Marine Road and rail Transportation Infrastructure Road and rail includes: railroads and trucking. Transportation infrastructure includes airport services, highways and rail tracks, and marine ports and services. Utilities (2 companies) It consists of: Electric utilities Gas utilities Multi-utilities Water utilities Independent power and renewable electricity producers Independent power and renewable electricity producers includes: independent power producers and energy traders, and renewable electricity. 2
Appendix II Retained earnings analysis Sectors Retained earnings on date of transition (SOCPA) SARm Retained earning (IFRS) SARm Net change SARm % of net change over retained earning (SOCPA) Real estate 2,137 539 (1,598) (74.8)% Capital goods 5,123 2,531 (2,591) (5.6)% Material 38,546 26,385 (12,161) (31.55)% Consumer durables and apparel 275 27 (68) (24.4)% Energy 2,857 2,416 (441) (15.5)% Food and beverages 7,992 6,983 (1,9) (12.6)% Health care equipment and services 1,863 1,685 (178) (9.6)% Transportation 918 848 (7) (7.6)% Consumer services 2,5 1,882 (123) (6.1)% Food and staples retailing 724 73 (21) (2.9)% Telecommunication 65,894 65,225 (669) (1.)% Commercial and professional services 212 211 (1).% Media (99) (96) 3 3. % Retailing 1,16 1,54 38 3.7% Utilities 16,68 16,842 773 4.8% Total 145,531 127,415 (18,116) (12.45)% 21
Net decrease in assets Net increase in assets Appendix III Assets analysis All figures are in SARm with rounding off exception Sectors PPE Advances and prepayments Investment properties Receivables Available for sale investments Deferred tax Held to maturity Cash Capital goods 487 (163) 8 (19) 88 (27) Commercial and professional services Consumer durables and apparel (3) (13) 84 Consumer services (546) (119) 544 14 3 Energy (282) (7) Food and beverages 941 (4) 368 (247) (28) (2) Food and staples retailing Health care equipment and services (216) (56) 17 (18) (1) (6) 1 19 (86) 18 (5) Material (1,658) 143 194 32 149 271 Media (6) Real estate (719) (17) (873) (44) 233 2 Retailing (735) (69) 692 63 99 Telecommunication 221 1,563 (12) Transportation (327) (22) 37 47 (17) Utilities 16,25 4,974 539 282 21 193 Total 13,371 4,651 1,948 1,311 878 292 21 136 Sectors Biological assets Intangible assets Inventories Loans to others Goodwill Investment in other companies Other assets Total adjustment to assets Capital goods (4) (98) (66) (78) (1,385) (1,256) Commercial and professional services Consumer durables and apparel (21) (21) 9 (15) (72) Consumer services (2) (16) Energy (37) (13) (43) Food and beverages 36 86 1 (371) (35) 693 Food and staples retailing 1 2 (35) 43 (116) Health care equipment and services 4 (67) 35 (73) Material (121) (293) (832) (3,131) (1,326) (1,527) (8,99) Media 7 (4) (3) Real estate (49) 17 (1) (754) (2,25) Retailing 3 (7) 46 Telecommunication (352) (487) (1,464) (531) Transportation 22 13 (8) 15 Utilities 157 98 (86) (1,965) (4,84) 15,28 Total (12) (18) (41) (1,795) (3,131) (4,288) (9,997) 2,986 22
Net decrease in liabilities Net increase in liabilities Appendix IV Liabilities analysis All figures are in SARm with rounding off exception Sectors Government grants Loans Other liabilities Employee benefits Deferred income Provision for decommissioning liability Tax liabilities Capital leases Capital goods (114) (256) 95 14 21 Commercial and professional services Consumer durables and apparel 5 Consumer services (1,431) 4 1,63 8 68 Energy 71 Food and beverages 14 268 18 219 (181) 97 24 Food and staples retailing Health care equipment and services (16) (1) 42 (59) 11 46 18 (3) Material (1,42) 23 3,738 174 482 88 Media (3) Real Estate (15) (72) 23 (8) Retailing (11) 43 (2) Telecommunication 1,294 (4,54) (329) 198 336 Transportation (81) 75 18 Utilities 46,35 8,683 12,48 1,67 (268) Total 46,91 9,15 5,53 5,9 837 621 531 156 Sector Dividends due Due to related parties Payables to liabilities Capital goods 6 (6) 91 (149) Commercial and professional services (21) (21) Consumer durables and apparel 5 Consumer services 246 (6) Energy 16 87 Food and beverages 97 554 Food and staples retailing (43) (59) Health care equipment and services (1) (7) 136 Material (137) 19 3,389 Media (3) Real estate (8) (79) Retailing 95 27 Telecommunication 2,644 88 Transportation (85) 154 81 Utilities (53,372) 14,194 Total (9) (143) (49,998) 17,615 23
Appendix V IFRS 1 Exemptions utilized Sectors IFRS 2 IFRS 3 IFRS 9/ IAS 39 IAS 16 IAS 21 IAS 23 IAS 28 IFRIC 1 IFRIC 4 Capital goods 6 4 1 1 Commercial and professional services Consumer durables and apparel 1 1 Consumer services 3 1 2 1 2 Energy 1 1 1 Food and beverages 2 1 Food and staples retailing Health care equipment and services 1 1 1 1 3 1 2 1 Material 1 1 3 2 2 4 1 2 3 Media 1 1 1 Real estate 1 Retailing 2 1 1 1 1 Telecommunication 2 1 1 1 1 1 1 Transportation 2 1 Utilities 1 Grand total 1 33 4 8 13 13 4 3 11 24
Appendix VI Sl. no. Sector Page no. 1 Capital goods 27 2 Commercial and professional services 29 3 Consumer durables and apparel 3 4 Consumer services 32 5 Energy 34 6 Food and beverages 35 7 Food and staples retailing 38 8 Health care equipment and services 41 9 Material 44 1 Media 48 11 Real estate 49 12 Retailing 51 13 Telecommunication 53 14 Transportation 55 15 Utilities 57 25
Capital goods Sl. no Company name Change in RE % to assets to liabilities 1 Capital goods A 94% (774,359) 87,777 2 Capital goods B 51% (453,843) (277,848) 3 Capital goods C 36% 4 Capital goods D 2% (24,669) 17,423 5 Capital goods E 16% (12,671) 17,613 6 Capital goods F 14% 8,786 7 Capital goods G 12% (1,15) 3,378 8 Capital goods H 95% 39,566 (1,767) 9 Capital goods I 6% 8,34 1 Capital goods J 5% (14,87) (1,3) 11 Capital goods K % (11,132) (11,577) 12 Capital goods L 1% (3,1) (262) 26
Capital goods (contd) Impact on retained earnings (SARm): Capital goods 6, 5,123 4, 2, 2,531 Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact (2,) (4,) (2,591) Impact on assets (SARm): Capital goods 5 487 88 5 5 8 (19) (27) (4) 1 (98) (66) (78) 15 (163) (1,256) 1,3 1,35 1,4 (1,385) PPE Advances and prepayments Investment properties Receivables Available for sale investments Cash Intangible assets Inventories Loans to others Investment in other companies Other assets s to assets 27
Capital goods (contd) Impact on liabilities (SARm): Capital goods 1 95 91 5 (5) 14 21 6 (6) (1) (15) (114) (149) (2) (25) (3) (256) Loans Other liabilities Employee benefits Provision for decommissioning liability Tax liabilities Dividends due Due to related parties Payables to liabilities 28
Commercial and professional services Sl. no Company name Change in RE % to assets to liabilities 1 Commercial and professional services A.2% (21,115) (2,698) Impact on retained earnings (SARm): Commercial and professional services 212. 212 211.5 211. 211..5 1. (1) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact Impact on assets (SARm): Commercial and professional services (4) (8) (12) Impact on liabilities (SARm): Commercial and professional services (4) (8) (12) (16) (16) (2) (24) (21) (21) (2) (24) (21) (21) Inventories to assets Payables to liabilities 29
Consumer durables and apparels Sl. no Company name Change in RE % to assets to liabilities 1 Consumer durables and apparels A 35% (53) 1 2 Consumer durables and apparels B 14% (19) 5 3 Consumer durables and apparels C 1% (1) 4 Consumer durables and apparels D % () Impact on retained earnings (SARm): Consumer durables and apparels 3 275 25 2 27 15 1 5 (5) (1) (68) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact 3
Consumer durables and apparels (contd) Impact on assets (SARm): Consumer durables and apparels Impact on liabilities (SARm): Consumer durables and apparels 85 5 84 9 6 5 5 5 4 3-5 (3) 2 1-1 (13) (72) 15 (15) (1) PPE Receivables Available for sale investments Inventories Investment in other companies to assets Employee benefits s to liabilities 31
Consumer services Sl. no Company name Change in RE % to assets to liabilities 1 Consumer services A 48% (2) 72 2 Consumer services B 6% (1) () 3 Consumer services C 6% 2 5 4 Consumer services D 5% (6) 1 5 Consumer services E 2% (83) Impact on retained earnings (SARm): Consumer services 2,1 2,5 2, 1,882 1,9-1 2 (123) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact 32
Consumer services (contd) Impact on assets (SARm): Consumer services 55 1 544 14 5 3 (2) 5 (16) 1 55 (546) (119) PPE Advances and prepayments Investment prop Receivables Deferred tax Investment in other companies to assets Impact on liabilities (SARm): Consumer services 1,7 1,63 68 246 6 5 4 3 2 1 4 8 1,44 1,431 6 Other liabilities Deferred income Capital leases to liabilities Employee benefits Tax liabilities Payables 33
Energy Sl. no Company name Change in RE % to assets to liabilities 1 Energy A 11% (13) 4 2 Energy B 11% (352) 27 3 Energy C 19% (37) 55 4 Energy D % Impact on retained earnings (SARm): Energy 3, 2,857 2,416 2,5 5 (441) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact Impact on assets (SARm): Energy Impact on liabilities (SARm): Energy (15) (7) (37) (13) 1 8 6 71 87 (3) (282) 4 2 16 (45) (43) PPE Receivables Loans to others Other assets to asset Employee benefits Payables to liabilities 34
Food and beverages Sl. no Company name Change in RE % to assets to liabilities 1 Food and beverages A 1263% 194 1 2 Food and beverages B 37% 18 2 3 Food and beverages C 31% 48 456 4 Food and beverages D 192% 28 39 5 Food and beverages E 5% (16) (4) 6 Food and beverages F 2% 3 7 Food and beverages G 1% (2) 46 8 Food and beverages H % 1 2 9 Food and beverages I % () () 1 Food and beverages J 4% () 11 Food and beverages K 5% (1) Impact on retained earnings (SARm): Food and beverages 8, 7,992 7,5 7, 6,983 5 1, 1,5 (1,9) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact 35
Food and beverages (contd) Impact on assets (SARm): Food and beverages 1, 941 9 8 7 368 693 86 3 (4) (247) (28) (2) 36 1 (35) 4 (371) PPE Advances and prepayments Biological assets Intangible assets Investment properties Receivables Inventories Investment in other companies Available for sale investments Cash Other assets to assets 36
Food and beverages (contd) Impact on liabilities (SARm): Food and beverages 6 554 5 4 3 268 219 97 97 14 18 24 1 2 181 Government grants Loans Other liabilities Employee benefits Deferred income Provision for decommissioning liability Tax liabilities Payables to liabilities 37
Food and staples retailing Sl. no Co.name Change in RE % to assets to liabilities 1 Food and staples retailing A 69% (9) 1 2 Food and staples retailing B 1% (16) (66) 3 Food and staples retailing C 6% (1) 6 4 Food and staples retailing D % Impact on retained earnings (SARm): Food and staples retailing 73 72 71 724 73 1 2 3 (21) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact 38
Food and staples retailing (contd) Impact on assets (SARm): Food and staples retailing (contd) 17 4 2 2 17 43 1 1 2 1 (1) (6) 2 (18) 3 4 (35) 5 22 (216) (56) (116) PPE Advances and prepayments Investment properties Receivables Available for sale investments Cash Biological assets Intangible assets Inventories Investment in other Companies to assets 39
Food and staples retailing (contd) Impact on liabilities (SARm): Food and staples retailing 5 1 1 15 45 16 43 5 55 6 59 Other liabilities Tax liabilities Payables to liabilities 4
Health care equipment and services Sl. no Company name Change in RE % to assets to liabilities 1 Health care equipment and services A 72% (127) 121 2 Health care equipment and services B 15% 61 9 3 Health care equipment and services C 3% (4) 8 4 Health care equipment and services D 2% 6 5 Health care equipment and services E 1% (2) (6) 6 Health care equipment and services F 1% (2) Impact on retained earnings (SARm): Healthcare equipment and services 2, 1,863 1,8 1,685 2 (178) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact 41
Health care equipment and services (contd) Impact on assets (SARm): Healthcare equipment and services 35 35 3 25 2 1 5 1 19 18 4 5 7 75 8 (73) (5) (67) 85 9 (86) PPE Advances and prepayments Receivables Deferred tax Cash Intangible assets Inventories Investment in other companies to Assets 42
Health care equipment and services (contd) Impact on liabilities (SARm): Healthcare equipment and services 14 13 136 12 11 4 42 11 46 3 2 18 1 1 2 3 1 7 3 4 5 6 59 Government grants Loans Other liabilities Employee benefits Deferred Income Tax liabilities Dividends due Payables to liabilities 43
Material Sl. no Company name Change in RE % to assets to liabilities 1 Material A 157% (18) 4 2 Material B 629% (115) 3 3 Material C 261% (3) 4 Material D 24% (164) 2 5 Material E 68% (313) 6 Material F 65% (682) 8 7 Material G 58% (985) 85 8 Material H 57% (2,428) 2,896 9 Material I 5% (434) 24 1 Material J 33% (32) 1 11 Material K 3% (2,573) (312) 12 Material L 27% 23 13 Material M 27% (113) 236 14 Material N 23% (11) 2 15 Material O 23% (242) (4) 16 Material P 21% (13) 33 17 Material Q 12% (35) 1 18 Material R 1% (92) 5 19 Material S 15% 25 (31) 2 Material T 22% (51) 21 Material U 4% 148 85 22 Material V 3% (41) 227 44
Material (contd) Sl. no Company name Change in RE % to assets to liabilities 23 Material W 9% (5) 24 Material X 8% (14) (2) 25 Material Y 4% 3 21 26 Material Z 4% 3 27 Material AA 4% (19) 3 28 Material AB 4% (3) 6 29 Material AC 3% (6) 3 Material AD 3% 1 31 Material AE 2% 2 32 Material AF 1% (5) 33 Material AG 1% 8 34 Material AH % 2 8 35 Material AI % (55) (55) 36 Material AJ % 37 Material AK % 38 Material AL % 39 Material AM % 11 9 45
Material (contd) Impact on retained earnings (SARm): Material 45, 4, 35, 3, 25, 2, 15, 1, 5, 5, 1, 15, 38,546 26,385 (12,161) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact Impact on assets (SARm): Material 4 2 143 194 32 149 271 2 4 (121) (293) 6 8 1,4 1,6 8,2 (1,658) (8,99) PPE Deferred tax Advances and prepayments Intangible assets Investment properties Inventories Receivables Loans to others Available for sale investments Goodwill (832) (1,326) (1,527) (3,131) Investment in other countries Other assets to assets 46
Material (contd) Impact on liabilities (SARm): Material 4, 3,5 3,738 3,389 482 5 23 174 88 137 19 1, 1,5 (1,42) Loans Other Liabilities Employee benefits Provision for decommissioning liability Tax liabilities Capital leases Due to Related Parties Payables to Liabilities 47
Media Sl. no Company name Change in RE % to assets to liabilities 1 Media A 2.8% (2,644) (2,816) Impact on retained earnings (SARm): Media 4 3 2 96 98 (96) 1 (99) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact Impact on assets (SARm): Media Impact on liabilities (SARm): Media 8 7, 6.5 4 2 (2) (4) (6) PPE (6) Intangible assets (3) (4) Inventories to assets 1. 1.5 2. 2.5 3. 3. 3. Employee benefits to liabilities 48
Real estate Sl. no Company name Change in RE % to assets to liabilities 1 Real estate A 8551% (2,144) (697) 2 Real estate B 42% (71) 3 3 Real estate C 4% (56) 3 4 Real estate D 2% (2) (8) 5 Real estate E % 6 Real estate F % 7 Real estate G 4% 68 (1) Impact on retained earnings (SARm): Real estate 2,5 2,137 5 539 5 1, 15 2, (1,598) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact 49
Real estate (contd) Impact on assets (SARm): Real estate 24 233 17 1 1 2 3 4 72 73 74 75 2,21 (719) (17) (873) (44) (2,25) 2 (49) (1) (754) PPE Advances and prepayments Investment properties Receivables Available for sale investments Cash Biological assets Intangible assets Investment in other companies Other assets to assets Impact on liabilities (SARm): Real estate 25 2 15 1 5-5 1 15 75 71 15 Loans 72 23 79 72 Employee benefits 8 8 Payables Other liabilities Deferred income to liabilities 5
Retailing Sl. no Company name Change in RE % to assets to liabilities 1 Retailing A 14% 7 2 Retailing B 7% (3) 23 3 Retailing C 4% (6) 1 4 Retailing D 3% (12) 5 5 Retailing E 1% (3) (2) Impact on retained earnings (SARm): Retailing 1,6 1,54 1,4 1,2 1,16 38 2 Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact 51
Retailing (contd) Impact on assets (SARm): Retailing 7 99 8 6 4 2 692 63 46 3 2 (7) 4 6 (735) 74 (69) PPE Advances and prepayments Investment properties Receivables Available for sale investments Intangible assets Other assets to assets Impact on liabilities (SARm): Retailing 1 95 5 43 27 2 (5) (1) (15) 11 Other liabilities Employee benefits Deferred income Payables to liabilities 52
Telecommunication Sl. no Company name Change in RE % to assets to liabilities 1 Telecommunication A % (48) (258) 2 Telecommunication B 1% (132) (115) 3 Telecommunication C 7% 82 461 Impact on retained earnings (SARm): Telecommunication 66, 65,894 65,5 65,225 5 1, (669) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact 53
Telecommunication (contd) Impact on assets (SARm): Telecommunication 2, 1,5 1,563 1, 5 5 1, 1,5 221 PPE Receivables Available for sale investments (12) (352) (487) (531) (1,464) Intangible assets to assets Investment in other companies Other assets Impact on liabilities (SARm): Telecommunication 2.8 1,294 2,644 1,2 1, 8 6 4 2 88 198 336 2 4,2-4,54-329 Loans Other liabilities Employee benefits Deferred income Provision for decommissioning liability Payables to liabilities 54
Transportation Sl. no Company name Change in RE % to assets to liabilities 1 Transportation A 14% (6) 67 2 Transportation B 2% 21 14 3 Transportation C % Impact on retained earnings (SARm): Transportation 95 9 85 918 848 5 1 (7) Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact 55
Transportation (contd) Impact on assets (SARm): Transportation 31 4 37 47 3 2 1 15 22 13 1 (8) 2 33 (327) (22) (17) PPE Advances and prepayments Investment properties Receivables Available for sale investments Intangible assets Investment in other companies Other assets in assets Impact on liabilities (SARm): Transportation 18 15 154 12 9 75 81 6 3 18 (3) (6) (9) 81 85 Other liabilities Deferred income Payables Employee benefits Dividends due to liabilities 56
Utilities Sl. no Company name Change in RE % to assets to liabilities 1 Utilities A 77% 17 2 Utilities B 5% 15,28 14,177 Impact on retained earnings (SARm): Utilities 17, 16,842 16,5 16,68 773 5 Sum of RE on date of transition (SOCPA) Sum of RE (IFRS) Net impact 57
Utilities (contd) Impact on assets (SARm): Utilities 17, 16, 16,25 4,974 15,28 4, 3, 2, 1, 539 282 21 193 157 98 1, (86) 5, PPE Advances and prepayments Held to maturity Cash (1,965) (4,84) Loans to others Investment in other companies Investment properties Intangible assets Other assets Available for sale investments Inventories to assets Impact on liabilities (SARm): Utilities 48, 46,35 14,194 14, 12,48 12, 1, 8,683 8, 6, 4, 2, 1,67 54, 268 53,372 Government grants Other liabilities Deferred income to liabilities Loans Employee benefits Payables 58
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