Practus’ assisted Arabco in successfully converting all financial statements to IFRS within 3 months from commencement to completion.

Client NameIndustryOwnershipManagementNo. of EmployeesROI On FeeSizeProject Duration
ArabcoDiversePrivateProfessional~2004.3x$100 million3 months

About The Company

   Arabco is a large conglomerate headquartered in Saudi Arabia and operates in multiple industries such as construction, retail, luxury products, telecom, automobile, etc. ​

Practus’ Role

  • Arabco traditionally prepared its financial statements as per Saudi accounting standards​.
  • Saudi moved to IFRS w.e.f. 2018.  This necessitated a conversion from Saudi standards to IFRS​.
  • Since the group consisted of several companies, consolidation of accounts was also required under IFRS​.
  • Revenue recognition was to be done on a completely different basis under IFRS.  This issue was compounded because due to the fact that the group was into diverse businesses and each business had various non-standard contracts with customers​.
  • Further, the company was faced with several new requirements under IFRS such as fair value accounting, related party adjustments, end-of-service benefits, expected credit loss, etc.​

Impact Delivered

  • Successful conversion of all financial statements to IFRS within 3 months from commencement to completion.
  • Successful completion of audit as per statutory timelines.​