Clear accounting positions on complex transactions, documented to audit standard.

The incremental borrowing rate is the rate a lessee would pay to borrow, over a similar term and with similar security, the funds necessary to obtain an asset of similar value in a similar economic environment. We start from a risk-free reference (Saudi government sukuk or SAIBOR-based swaps for riyal leases, Bahraini government bonds for dinar leases), add a credit spread reflecting the lessee's borrowing profile, and adjust for lease term, security and asset type. The derivation is documented so the same approach can be applied consistently to new leases and modifications.

The lease term includes periods covered by an extension option if the lessee is reasonably certain to exercise it, and periods covered by a termination option if the lessee is reasonably certain not to exercise it. Reasonable certainty is assessed using economic factors: leasehold improvements, relocation costs, business criticality of the location, market rents relative to contract rents and past practice. In the GCC, where many commercial leases are short with rolling renewals, this judgement often has a large effect on the liability and must be revisited on triggering events.

Variable consideration (performance bonuses, penalties, volume rebates, milestone payments) is estimated using the expected value or most likely amount method and included in the transaction price only to the extent that it is highly probable a significant reversal will not occur. Constraining the estimate is a judgement we document with the factors considered: susceptibility to external factors, length of time to resolution, experience with similar contracts and the range of possible outcomes. Contract-by-contract analysis is required for construction, engineering and services businesses.

Under IFRS 3 an acquisition is a business combination if the acquired set includes inputs and a substantive process that together contribute to creating outputs. The optional concentration test allows an acquirer to conclude it is an asset acquisition if substantially all of the fair value is concentrated in a single identifiable asset or group of similar assets. The distinction matters: business combinations give rise to goodwill, deferred tax on fair value adjustments and expensed transaction costs, whereas asset acquisitions allocate cost to the assets acquired with no goodwill. Real estate acquisitions in the GCC frequently sit on this boundary.

We identify cash-generating units at the lowest level with largely independent cash inflows, allocate goodwill to the CGUs or groups expected to benefit, and estimate the recoverable amount as the higher of value in use and fair value less costs of disposal. Value-in-use models use board-approved budgets for a maximum of five years with a terminal growth rate that does not exceed long-term growth for the market, discounted at a pre-tax rate derived from a weighted average cost of capital. We stress-test the key assumptions and prepare the sensitivity disclosures required when a reasonably possible change would eliminate headroom.

Under IFRS 1 (and IPSAS 33 for public sector entities), the entity prepares an opening statement of financial position at the date of transition, applies the standards retrospectively subject to the mandatory exceptions and optional exemptions, and presents reconciliations of equity and profit from the previous framework. Our projects run in phases: gap assessment and impact analysis, policy selection and exemption elections, opening balance sheet, comparative period restatement, first compliant financial statements and training. Public sector transitions typically add asset registers, valuation of infrastructure assets and consolidation of controlled entities.

Yes. We prepare complete IFRS financial statements including primary statements, accounting policies and notes, supported by a disclosure checklist and a tie-out file mapping every number to the trial balance or a supporting schedule. For listed entities we align with regulator formats and timelines.