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GREENLINE™ · THE NEXT CHAPTERSUPPLEMENTARY INFORMATION · AN ILLUSTRATIVE CLOSE

AN ILLUSTRATIVE CLOSE.

One close, worked through.

A fictional contracting company closes its half-year at 30 June 2026. This supplement follows three of GREENLINE's period-end rules from the books to the proposed entry, and shows why the period cannot lock until each one is resolved.

Every figure is a fictional sample record, simplified to show the mechanics. Loss rates, cost estimates and actuarial assumptions are your company's judgments, agreed with your auditor and, for IAS 19, your actuary.

S.1

The close board.

At 30 June every period-end rule has run. Four are clear. Three have measured a difference and proposed an entry, and each of those blocks the close until it is posted and reviewed.

EXHIBIT S1 · CLOSE BOARD AT 30 JUNE 2026
RULESTANDARDOWNERSTATUSCLOSE
Expected credit lossesIFRS 9Receivables accountantEntry proposed, SAR 42,180.00Blocks
Revenue on contractsIFRS 15Project accountantEntry proposed, SAR 270,000.00Blocks
End-of-service obligationIAS 19Payroll accountantEntry proposed, SAR 397,000.00Blocks
LeasesIFRS 16General ledger accountantMeasured, no differenceClear
Inventory at net realisable valueIAS 2Cost accountantFinding accepted by the owner, reason recorded (a)Clear
Foreign-currency retranslationIAS 21Treasury accountantEntry postedClear
ZakatIAS 12 and zakatTax accountantEntry postedClear
(a) Reason recorded with the finding: the items in the over-12-month band are committed under a signed sales order at a price above cost. Illustrative close on fictional sample records.

S.2

Expected credit losses, IFRS 9.

The simplified approach, with a provision matrix built from the company's own write-off history and adjusted for weighted forward-looking scenarios. One customer in dispute is assessed individually and kept out of the matrix. The rule compares the allowance required with the allowance held and proposes the difference.

EXHIBIT S2 · PROVISION MATRIX, TRADE RECEIVABLES AT 30 JUNE 2026
DAYS PAST DUEGROSS (SAR)HISTORICAL LOSS RATEFORWARD-LOOKING ADJUSTMENTRATE APPLIEDALLOWANCE (SAR)
Not past due4,820,0000.5%0.1%0.6%28,920
1 to 301,960,0001.5%0.3%1.8%35,280
31 to 901,140,0003.8%0.7%4.5%51,300
91 to 180610,0009.5%1.5%11.0%67,100
181 to 365285,00028.0%4.0%32.0%91,200
Over 36596,000100.0%0.0%100.0%96,000
Collective assessment8,911,000369,800
Customer in dispute, assessed individually150,00045.0%67,500
Allowance required9,061,0004.83%437,300
Allowance held in the books(395,120)
Increase proposed42,180
Illustrative figures on fictional sample records. The loss rates and scenario weights are the company's own, reviewed by its auditor.
PROPOSED ENTRY · IFRS 9
ACCOUNTDEBIT (SAR)CREDIT (SAR)
Impairment loss on financial assets42,180.00
Allowance for expected credit losses42,180.00
Total42,180.0042,180.00

S.3

Revenue on contracts, IFRS 15.

Progress is measured by the cost incurred against the estimated total cost of each contract. The company books revenue as it invoices, so the rule carries the difference between revenue measured and revenue billed as a contract asset or a contract liability, contract by contract. No contract balances were brought forward.

EXHIBIT S3 · CONTRACT MEASUREMENT AT 30 JUNE 2026 (SAR)
CONTRACTPRICEESTIMATED TOTAL COSTCOST TO DATEPROGRESSREVENUE MEASUREDBILLED AND BOOKEDASSET / (LIABILITY)
Contract A12,000,0009,600,0005,760,00060.0%7,200,0006,950,000250,000
Contract B4,500,0003,750,0001,125,00030.0%1,350,0001,620,000(270,000)
Total16,500,00013,350,0006,885,0008,550,0008,570,000(20,000)
Contract A is under-billed and shown as a contract asset; Contract B is over-billed and shown as a contract liability. The two are not offset. Neither contract is loss-making, so IAS 37 requires no onerous-contract provision. Illustrative figures on fictional sample records.
PROPOSED ENTRY · IFRS 15
ACCOUNTDEBIT (SAR)CREDIT (SAR)
Contract asset, Contract A250,000.00
Revenue from contracts with customers20,000.00
Contract liability, Contract B270,000.00
Total270,000.00270,000.00

S.4

End-of-service obligation, IAS 19.

Valued by the projected unit credit method from the payroll itself. Payroll has already posted the settlements paid in the half-year; the rule measures the closing obligation and proposes the rest, with service and interest cost to profit or loss and the remeasurement to other comprehensive income.

EXHIBIT S4 · MOVEMENT IN THE OBLIGATION, HALF-YEAR TO 30 JUNE 2026
ITEMRECOGNISED INSAR
Obligation at 1 January 20263,480,000
Current service costProfit or loss214,000
Interest cost, 5.0% a year on the opening obligation for six monthsProfit or loss87,000
Settlements paidPosted by payroll(156,000)
Remeasurement loss, change in the salary-growth assumptionOther comprehensive income96,000
Obligation at 30 June 20263,721,000
Held in the books (opening obligation less settlements paid)(3,324,000)
Increase proposed397,000
Simplified for illustration: interest is calculated on the opening obligation only. The discount rate, salary growth and attrition are assumptions the company agrees with its actuary. Fictional sample records.
PROPOSED ENTRY · IAS 19
ACCOUNTDEBIT (SAR)CREDIT (SAR)
Employee benefits expense, current service cost214,000.00
Finance cost, interest on the obligation87,000.00
Remeasurement of the obligation, other comprehensive income96,000.00
End-of-service obligation397,000.00
Total397,000.00397,000.00

S.5

Effect on the period.

Before the close, the owner sees what the three proposed entries do to the half-year result, rule by rule.

EXHIBIT S5 · EFFECT OF THE PROPOSED ENTRIES (SAR)
RULEPROFIT OR LOSSOTHER COMPREHENSIVE INCOMETOTAL COMPREHENSIVE INCOME
Expected credit losses, IFRS 9(42,180)–(42,180)
Revenue on contracts, IFRS 15(20,000)–(20,000)
End-of-service obligation, IAS 19(301,000)(96,000)(397,000)
Total(363,180)(96,000)(459,180)
Shown before any zakat or income-tax effect. Illustrative figures on fictional sample records.

S.6

The record, and the lock.

Each proposed entry carries its own record: the rule and standard behind it, and who prepared, reviewed and approved it, and when. Exhibit S6 shows the record behind the IFRS 9 entry.

EXHIBIT S6 · THE RECORD BEHIND THE IFRS 9 ENTRY
FIELDRECORD
RuleExpected credit losses, IFRS 9, simplified approach
ProposedBy the rule at period end, 30 June 2026: SAR 42,180.00
Prepared and postedReceivables accountant, 30 June 2026, 18:40
ReviewedGeneral ledger lead, 1 July 2026, 09:15
ApprovedFinance manager, 1 July 2026, 11:30
Audit logEach step written to the hash-chained log, linked to the entry before it
Illustrative record on fictional sample data. Roles and approval levels are your company's settings.

The lock.

With the three entries posted and reviewed, no blocking rule is open and the period locks. The approved statements are frozen with their SHA-256 fingerprint. Any later correction posts in an open period, as a reversal and a new journal.

GREENLINE applies the rules and proposes the entries. The loss rates, the cost estimates and the actuarial assumptions are judgments that stay with your team, and the audit opinion with your auditor.

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The standards each rule applies are set out in Notes 1 and 2.