CMA LAW: Circular No. (09) of 2026 to all Listed Companies, Licensed Persons, and Collective Investment Schemes Managers Regarding Preparation for the Implementation of the Requirements of International Financial Reporting Standard 18 (IFRS 18)

Chairman of the Board of Directors,
Greetings 

Pursuant to the issuance of the International Financial Reporting Standard 18 (IFRS 18) “Presentation and Disclosure in Financial Statements”, which will supersede the International Accounting Standard 1 (IAS 1) “Presentation of Financial Statements", effective for financial periods beginning on or after 1 January 2027, with earlier application permitted, this standard responds to investor requests for obtaining enhanced information on the corporate performance, which shall improve the presentation of financial statements and facilitates comparability and financial analysis between various corporate performance in order to enhance the quality of disclosures, raise the level of transparency in financial statements, and support investor protection. Moreover, due to the significance of this standard, which represents a qualitative shift in the presentation of financial statements and the quality of disclosures, the entities concerned with its implementation must ensure early preparation to comply with its requirements and provide all necessary resources which shall be reflected in the quality of their disclosures and the fair, accurate, and more transparent presentation of their financial statements.

Accordingly, the Capital Markets Authority (CMA) draws attention of the entities required to submit their financial statements to the CMA—including listed companies, licensed persons, and collective investment schemes—to the necessity of considering the following:

• Conducting Gap Analysis to evaluate the impact of the standard implementation on financial statements and accounting policies applied by the management.
• Taking the necessary measures to prepare for compliance with the requirements of the aforementioned standard before its mandatory effective date, particularly for updating the Internal Information Systems and Chart of Accounts.
• Focusing on Building Capacity and enhancing the competence of the relevant staff, through providing the necessary training programs and workshops to strengthen their readiness for the implementation of the standard's requirements.
• The implementation of this standard requires the restatement of comparative figures (Retrospective Application), which necessitates early preparation to meet the standard's requirements.

Emad Ahmed Tifouni
Issued on:08/06/2026.

Copy of the Official Document

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