Sipchem has announced an update on the transformation process to IFRS, highlighting that retained earnings will decrease by SAR486mn. The company attributed the SAR486mn decrease to the: i) impairment of property, plant, equipment, and investment properties by SAR408mn; ii) de-recognition of SAR33mn ineligible costs related to property, plant and equipment; iii) de-recognition of SAR12mn ineligible costs related to intangible assets; iv) recognising a SAR23mn provision related to renewing the condition of the company sites; v) applying effective interest rates on long-term loans, which increased retained earnings by SAR14mn; vi) applying SAR24mn employee end of service liability. The company noted that the above adjustments is from the side of its internal IFRS accounting team and that the financial auditor is currently reviewing  those adjustments. 

SIPCHEM: SAR17.72 as of 30 Mar. 2017, Rating: Neutral, TP: SAR18.50/share, MCap: USD1,733mn, SIPCHEM AB/2310.SE