The Insurance Regulatory Unit (IRU) has issued a circular requiring insurance companies to apply International Financial Reporting Standard (IFRS 18), [Presentation and Disclosure in Financial Statements], to annual and interim financial reports, with effect from 1 January 2027.
The insurance companies also have to:
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Observe the requirements of IFRS 18 regarding comparative information, including the restatement of comparative figures for the year 2026, taking into consideration the start date of the financial period.
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Take necessary internal measures to ensure technical and accounting readiness for the application of IFRS 18, including updating relevant policies, procedures, and systems, and coordinating with the external auditor regarding application and disclosure requirements before the commencement of the relevant financial period.
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The external auditor, when auditing or reviewing the financial statements, must take into account the extent of the company’s compliance with the requirements of IFRS 17 and IFRS 18, and disclose in their report any material non-compliance affecting the financial statements or the accompanying disclosures.
The circular, dated 1 November 2026, was issued by the IRU Head, Mr Mohammad Sulaiman Al-Otaibi.