IFRS® ACCOUNTING STANDARDS AT THE CORE.
The standards are built in, not bolted on.
Preventive rules run on every posting. Period-end rules measure each balance the way the standard requires and propose the journal. A blocking rule left open keeps the period from closing.
IFRS® ACCOUNTING STANDARDSBUILT IN · RULES ON EVERY POSTING
NOTE 1
Basis of preparation.
GREENLINE applies full IFRS Accounting Standards as endorsed in the Kingdom by SOCPA. Exhibit 1 sets out what the system measures at period end.
| STANDARD | WHAT THE SYSTEM DOES |
|---|---|
| IFRS 15 | Measures revenue on each contract by progress against its budget and carries the difference as a contract asset or a contract liability. |
| IFRS 9 | Computes expected credit losses with the simplified approach: a loss matrix from your own write-off history, weighted forward-looking scenarios, individual assessments. |
| IAS 19 | Values the end-of-service obligation by the projected unit credit method; service and interest cost to profit or loss, remeasurements to other comprehensive income. Accrues unused leave. |
| IFRS 16 | Carries each lease in the register as a right-of-use asset and a lease liability; replaces rent with depreciation and interest. |
| IAS 2 | Writes inventory down to net realisable value and applies the slow-moving bands you set. |
| IAS 37 | Provides for the expected loss on onerous contracts. |
| IAS 21 | Records foreign-currency transactions at the spot rate and retranslates monetary items at the closing rate. |
| IAS 16, IAS 38, IAS 36 | Depreciates and amortises asset by asset, and asks for the impairment review before the year closes. |
| IAS 12 and zakat | Computes the zakat base under the 2024 Implementing Regulations and income tax on the non-Saudi share, and charges both to profit or loss. |
| IAS 1 and IAS 24 | Checks the statements' identities and that related-party balances are disclosed. |
| IFRS 1 | Prepares the move to full IFRS Accounting Standards from IFRS for SMEs or another framework: the opening IFRS statement of financial position, restated comparatives, the reconciliations of equity and comprehensive income, the register of exceptions and exemptions, and a draft transition note. |
GREENLINE applies the rules and proposes the entries. Accounting judgments stay with your team, and the audit opinion with your auditor.
The supplementary information works three of these rules through one close: an illustrative close.
NOTE 2
Compliance in the Kingdom.
Every ZATCA filing, from the same books. Scope: Saudi Arabia. E-invoicing and tax requirements in other GCC and MENA countries are assessed country by country before any commitment.
E-invoicing, Phase 2.
UBL invoices with the cryptographic stamp, QR code and hash chain; clearance for tax invoices, reporting for simplified ones. Each taxpayer onboards its e-invoicing units to ZATCA's FATOORA platform before go-live.
The VAT return.
Fields 1 to 16 in ZATCA's structure, reverse charge and import VAT included, with the credit carried forward from the last return filed.
The zakat declaration.
The annual declaration for taxpayers keeping commercial books, with the base, the adjustments to net profit and the minimum and maximum tests.
Prepared, reviewed, approved.
Each return is prepared by one accountant, reviewed by another and approved by the owner, then filed and paid with the references recorded.
Readiness for certification.
The compliance module holds the controls, the policies and the evidence an auditor asks for, and shows which are still missing.
- ISO/IEC 27001 information security, with the 93 Annex A controls
- ISO/IEC 27701 privacy information management
- ISO 22301 business continuity and ISO 9001 quality
- ISO/IEC 42001 AI management
- NCA Essential Cybersecurity Controls and the Personal Data Protection Law
Readiness for certification. Certification itself is granted by an accredited body after its audit.
Local content.
The entity-level local content score, prepared in the template of the Local Content and Government Procurement Authority from payroll, purchasing and the asset registers, with the evidence the approved audit firm asks for. Each government contract's target, phased plan and local content reached are tracked to the final report.
READ NOTE 2.6 IN FULLNEXT