Abdulaziz Al-Furaih, the head of the steering committee at the Saudi Ministry of Finance, announced on Tuesday that the kingdom is nearing the issuance of its first financial center based on a comprehensive system of unified and harmonized standards and policies at both the national and international levels.
This is a step that enhances the efficiency of financial and accounting performance for the government.
Al-Furaih pointed out that the transition to the accrual basis in its form and content provides benefits that exceed the time and effort invested.
He explained that the transition helps provide accurate and comprehensive financial information that supports decision-making, enables performance evaluation, sets targets, and ensures objective accountability, among other benefits that improve the capabilities of the entity and the system in the financial and economic fields.
During the opening of the “Transition to Accrual Accounting Leadership Forum” held in Riyadh, Al-Furaih touched upon the most prominent achievements of the transition.
More than 190 opening balance sheets were issued for the year 2022, equivalent to 95% of the target number, and more than 180 transitional financial statements for the same year, constituting 90% of the target.
Additionally, the number of known high-value assets exceeded two million. Saudi Arabia was selected for international representation within the International Public Sector Accounting Standards Board (IPSASB) and its associated working groups.
Al-Furaih emphasized that the achievements realized are a first step that will be followed by inevitable steps to confirm the sustainability of operations on the accrual basis and reinforce the accomplishments achieved.
On his part, Hamad Al-Kinhel, the Deputy Minister of Finance for Financial and Accounting Affairs, clarified that the transition to the accrual basis is part of the initiatives of Vision 2030, and it is a strategic national project that achieves multiple goals and benefits.
It forms the appropriate foundation for building financial information that supports decision-makers.
Al-Kinhel indicated that the “Accrual Pioneers” program is one of the tools of change management launched at the Accrual Center to support and create competition among government entities.
The goal is to stimulate and expedite their transformation efforts with quality and within the appropriate time.
Abdullah Al-Muhaidl, the head of the Accrual Center, affirmed that today’s meeting is part of the change management path and a culmination of the progress achieved by government entities in the accrual accounting transition on all levels.
He emphasized the need for sustainable operations to preserve the achievements made during the previous stage.