The Authority shares its view on guarantees issued on obligations of other establishments

الهيئة تشارك وجهة نظرها بشأن الضمانات المصدرة على التزامات المنشآت الأخرى

The Saudi Organization for Chartered and Professional Accountants (SOCPA) shared its views on a tentative decision published by the IFRS Interpretations Committee regarding accounting for guarantees issued by some entities on the obligations of other entities. SOCPA noted the lack of clear definitions of a guarantee and of a debt instrument creates broad room for judgment, allowing application of IFRS 9, IFRS 17, IFRS 15, or IAS 37 depending on an entity's interpretation, which can reduce comparability of financial statements. SOCPA proposed that the international committee work on providing clear guidance to help preparers distinguish between different types of guarantees.

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