In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2022, and its financial performance and cash flows for the year then ended in accordance with Standards International Financial Reporting Standards (IFRS) adopted in the Kingdom of Saudi Arabia and other standards and statements issued by the Saudi Organization for Certified Public Accountants (SOCPA). Our responsibilities under these standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements" section of our report. Key audit matters are those matters that, in our professional judgment, were most significant in our audit of the current year's consolidated financial statements.
These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not express a separate opinion on these matters. Refer to note 6-20 of the consolidated financial statements for the accounting policy related to revenue recognition and note 29 for the related disclosures. Assessing the adequacy of the disclosures that management has included in the accompanying consolidated financial statements.
Obtain sufficient appropriate audit evidence about the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. From the matters communicated to those charged with governance, we determine those matters that were most significant in the audit of the current year's consolidated financial statements and are therefore key audit matters.
Interest in subsidiaries
The basic activity of the company is the provision of computer services (databases and information systems), the Internet, electronic communications, maintenance of computer devices and networks, and wholesale and retail trade in office furniture and library materials in accordance with Ministry of Information permit no.
Interest in associates
The main activity of the Company is the provision of computer services (databases and information systems), the Internet, electronic communications, maintenance of computer equipment and networks, as well as wholesale and retail trade of office furniture and library materials in accordance with License of the Ministry of Information No. The registered office address of the Company is PO. These consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (together IFRS) and other standards and pronouncements issued by the International Accounting Standards Board (IASB) as adopted by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”).
STANDARDS, INTERPRETATIONS AND AMENDMENTS TO EXISTING STANDARDS Standards issued but not yet effective
- Overall considerations
- Basis of consolidation
- Financial year end
- Functional and presentation currency
These consolidated financial statements have been prepared based on the accounting policies specified by IFRSs for each type of asset, liability, income and expense. The significant accounting policies applied in the preparation of these consolidated financial statements are set out in Note 6. These consolidated financial statements include the financial statements of the Company and its subsidiaries as at December 31, 2022.
Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Unrealized gains arising from transactions with equity-accountable enterprises are eliminated against the investment to the extent of the Group's interest in the investment enterprise. These consolidated financial statements are presented in Saudi Riyal (“SR”), which is the Group's functional currency.
USE OF JUDGEMENT AND ESTIMATES
NCI is measured at their proportionate share of the acquiree's identifiable net assets at the time of acquisition. When the Group loses control of a subsidiary, it derecognises the subsidiary's assets and liabilities and any associated NCI and other equity components. An estimate is made of the useful lives and scrap values of tangible and intangible assets with a view to calculating depreciation and amortization, respectively.
Actual results may vary and may result in significant adjustments to the Group's assets in the next financial year. Given the complexity of estimates and underlying assumptions and their long-term nature, changes to these assumptions have a significant impact on employee benefit commitments. The Group's zakat and tax charge on regular activities is the sum of the total zakat, current and deferred taxes.
The calculation of zakat and the Group's total tax liability involves a certain degree of judgment and judgment regarding certain items whose treatment can only be finally determined after a resolution has been reached with the relevant tax authority or, if applicable, through a formal legal process. By their nature, the valuation of provisions depends on estimates and judgments as to whether the criteria for recognition are met, including estimates of the likelihood of a cash outflow. The Group's estimates regarding provisions for environmental matters are based on the nature and severity of the contamination, as well as the technology required for remediation.
A number of the Group's accounting policies and disclosures require the measurement of fair values, both for financial and non-financial assets and liabilities. When measuring the fair value of an asset or liability, the Group uses observable market data to the extent possible. If the inputs used to measure the fair value of an asset or liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety at the same level of the fair value hierarchy as the lowest level input that is significant for the entire measurement.
The Group recognizes transfers between the levels of the fair value hierarchy at the end of the financial year in which the change has occurred.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Goodwill represents the excess of the cost of a business combination over the Group's interest in the fair value of the identifiable assets, liabilities and contingent liabilities acquired. When the fair value of identifiable assets, liabilities and contingent liabilities exceeds the fair value of the consideration paid, the excess is fully credited to the consolidated statement of profit or loss and other comprehensive income at the acquisition date. For each business combination, the Group elects whether to measure non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree's identifiable net assets.
Impairment losses from continuing operations are recognized in the statement of comprehensive income in expense categories corresponding to the function of the impaired asset. The Group classifies its financial assets into one of the categories described below, depending on the purpose for which the asset was acquired. Impairment provisions for trade receivables are recognized based on the simplified approach within IFRS 9 using a provision matrix in determining the lifetime expected credit losses.
Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. Liabilities bearing financing costs are initially recognized at fair value net of any transaction costs that are directly attributable to the issuance of the instrument. Any premium paid for an associate above the fair value of the Group's share of the identifiable assets, liabilities and contingent liabilities acquired is capitalized and included in the carrying amount of the associate.
The liability is recorded at the undiscounted amount of the earnings expected to be paid in exchange for that service. Changes in the present value of defined benefit obligations resulting from plan changes or limitations are immediately recognized in profit or loss as past service costs. The recoverable amount is the fair value of the asset or cash-generating unit less costs of disposal or present value, whichever is higher.
If the carrying amount of the asset or cash-generating unit exceeds its recoverable amount, the asset is considered impaired and reduced to its recoverable amount. Impairment losses on continuing operations are recognized in the income statement and in other comprehensive income, within the categories of expenses and in accordance with the function of the impaired asset. If such evidence exists, the Group estimates the recoverable amount of the asset or cash-generating unit.
Define the contract with the
Define performance
Determine the transaction
Allocate the transaction
Revenue recognition
- CONTRACT ASSETS
- PREPAYMENTS AND OTHER ASSETS
- RELATED PARTY TRANSACTIONS AND BALANCES
- INENTORY
- GOODWILL
- FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
- SHORT TERM ISLAMIC MURBAH
- ACCRUALS AND OTHER LIABILITIES
- ZAKAT AND INCOME TAX
- SHARE CAPITAL
- SELLING AND MARKETING EXPENSES
- OTHER EXPENSES
- COST OF REVENUE
- FINANCIAL INSTRUMENTS - RISK MANAGEMENT The Group is exposed through its operations to the following financial risks
- CONTINGENCIES AND COMMITMENTS
- FINANCIAL STATEMENTS APPROVAL
An operating segment is one of the components: that carries out business activities from which it can generate income and incur expenses, including income and expenses related to transactions with any other component of the Group;. the results of its operations are regularly analyzed by the chief operating officer as a decision maker to make decisions about resource allocation and performance evaluation; and. for which separate financial information is available. The Group in the normal course of business carries out transactions with various related parties. The Group has leases for buildings and offices used in its operations.
The Group's obligations under lease contracts are secured by the lessor's title to the leased assets. Like all other businesses, the Group is exposed to risks arising from the use of financial instruments. This note describes the Group's objectives, policies and processes for managing these risks and the methods used to measure them.
The Group measures financial instruments, such as investments accounted for in equity at fair value at each statement of financial position date. For purposes of fair value disclosure, the Group has defined classes of assets and liabilities based on the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above. amortized cost Total financial assets at fair value through profit or loss -. amortized cost Total financial assets measured at fair value. The Board has overall responsibility for defining the Group's risk management objectives and policies.
Credit risk is the risk of financial loss for the group if a customer or counterparty to a financial instrument does not fulfill its contractual obligations. The group's maximum exposure to credit risk is limited to the accounting value of financial assets recognized on the balance sheet date, as summarized below: Liquidity risk is managed by continuously monitoring that there are sufficient funds and bank and other credit facilities available to meet the group's future obligations.
Management monitors the rolling forecasts for liquidity and expected cash flows at group level. In addition, the Group's liquidity management policy includes forecasting cash flows and considering the level of liquid assets needed to meet them, monitoring liquidity ratios in the financial position and debt financing plans. The Group presents assets and liabilities in the statement of financial position based on short-term/long-term classification.
