CMA: Investment fund managers to use FV, reevaluation models to measure property from 2023

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Saudi Arabia's Capital Market Authority (CMA) obligated investment fund managers to continue applying the cost model to valuate property and investment property in the financial statements prepared for the fiscal periods before 2023.

The market regulator said in a statement on its website today, Feb. 22, 2021, that it allowed the investment fund managers to use the fair value (FV) model or the revaluation model to valuate the property and investment property in the financial statements prepared for the fiscal periods starting from 2023.

In addition, the CMA directed the investment fund managers to continue using the cost model to measure the machinery, equipment and intangible assets for five years starting from Jan. 1, 2021. However, the authority will reconsider this decision after five years.

On June 12, 2017, the regulator directed the investment fund managers to use the cost model to assess the property, machinery, equipment, investment property and intangible assets when preparing the financial statements as per the international accounting standards. The CMA then added that it will study the decision after three years, according to data compiled by Argaam.