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The audit profession in the Kingdom of Saudi Arabia is entering a new era of transformation. Shaped by evolving regulations, technological innovation, and shifting stakeholder priorities, assurance is no longer confined to historical compliance. Instead, it has become a strategic function that supports transparency, strengthens governance, and builds investor confidence. As the Kingdom advances its economic diversification goals under Vision 2030, the relevance and resilience of the audit function are more crucial than ever.

The International Monetary Fund’s (IMF) April 2025 World Economic Outlook (WEO) has provided updated inflationary assessments impacting financial reporting under IFRS. Based on this latest guidance, certain countries continue to be classified as hyperinflationary as at 30 June 2025, which triggers the application of IAS 29: Financial Reporting in Hyperinflationary Economies.

This publication is designed to give preparers and reviewers of IFRS financial statements a high-level awareness of recent changes to International Financial Reporting Standards. It covers both new Standards and Interpretations that have been issued and amendments made to existing ones.

The International Accounting Standards Board (IASB) has recently issued the 'Annual Improvements to IFRS Accounting Standards – Volume 11,' which includes necessary but non-urgent amendments to five key IFRS Standards. These updates, while minor, play a critical role in enhancing the clarity and consistency of financial reporting globally.

In the span of a year, Saudi Arabia has undergone a series of transformations in its International Financial Reporting Standards (IFRS). These modifications reflect the nation's drive to harmonize its accounting protocols with the worldwide financial reporting standards, facilitating investors' analysis and comparison of financial statements across diverse markets.

When the Saudi government developed their national transformation plan, one of its primary goals was to create an environment that would encourage the growth of the real estate industry in Saudi Arabia. Vision 2030 outlined various ways this could be achieved, one of which was their goal to build 300,000 new housing units over the next five years. Over 106,000 new housing units have already been constructed, with a further 101,000 currently under construction. This investment has injected much-needed diversity into the current housing stock, creating a surge of new jobs in construction and related industries such as architecture.

This article in our ‘Insights into IFRS 8’ series sets out further application issues and information regarding other standards involving operating segments.