| Additional Information |
Referring to what was previously announced in Saudi Stock Exchange (Tadawul) website on 27/01/2022. It’s part of the periodic follow-up to evaluate the Company’s investments and adapting its accounting treatments to adequately reflect the relevant partners’ agreement, we would like to note that the Company has re-evaluated some significant management judgments and estimates related to determining whether the Company has control, joint control or significant influence in its investment in Saudi Butanol Company Limited. Whereas Saudi Kayan Company owns 33.33% of the Saudi Butanol Company’s shares capital, the re-evaluation thereof resulted in a change in the accounting treatment and classification of this investment as a “joint operation” in accordance with IFRS 11 “Joint Arrangements” instead of categorizing it as an investment in an “associate company” in accordance with International Accounting Standard IAS No. 28 “Investments in Associates and Joint Ventures”. This change in the accounting treatment was applied during the fourth quarter of the year 2021 with a retroactive effect. This change did not have any financial impact on the opening equity balances, as well as the company's net results in the previous announced years / periods. Some of the financial effects were confined to the opening balances of some items in the statement of financial position and the presentation of the income statement for the year 2020. This investment was recognized by recording the Saudi Kayan share of assets, liabilities, revenues and expenses in the financial statements for all relevant years / periods. The auditor also indicated in his report in the paragraph “other matters related to comparative information” the following: The financial statements of the Company as at and for the years ended 31 December 2020 and 31 December 2019 (from which the statement of financial position as at 1 January 2020 has been derived) were audited by another auditor who expressed an unmodified opinion on those financial statements on 22 February 2021 (corresponding to 10 Rajab 1442H) and on 20 February 2020 (corresponding to 26 Jumada II 1441H) respectively. As part of our audit of the financial statements for the year ended 31 December 2021, we audited the adjustments described in Note 38 that were applied to restate the comparative information presented as at and for the year ended 31 December 2020 and the statement of financial position as at 1 January 2020. We were not engaged to audit, review, or apply any procedures to the financial statements for the year ended 31 December 2020 or 31 December 2019 (not presented herein) or to the statement of financial position as at 1 January 2020, other than with respect to the adjustments described in Note 38 to the financial statements. Accordingly, we do not express an opinion, conclusion or any other form of assurance on those respective financial statements taken as a whole. However, in our opinion, the adjustments described in Note 38 are appropriate and have been properly applied. |
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