Allows a realisation-method election instead of fair-value or impairment movements and sets carrying values and transition adjustments.
What should you do now?Maintain a register of covered assets and liabilities, opening values, movements and disposals throughout the election.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Allows a realisation-method election instead of fair-value or impairment movements and sets carrying values and transition adjustments.
This is a verified summary rather than a verbatim reproduction. Consult the official Arabic text, the Law and later decisions before making a final determination.
What does the Article mean in plain language?
The election replaces fair-value or impairment results with realisation-based recognition for covered assets and liabilities. Establish depreciated carrying value at the later of acquisition/incurrence and the first day of the election year. The five-year election may be limited to tangible assets or Investment Entities as specified. Revocation includes the difference between opening fair value and adjusted carrying value in the revocation year. This changes recognition timing under the rule; it does not permanently erase the gain.
Financial reporting, tax, transfer-pricing and consolidation teams.
Maintain a register of covered assets and liabilities, opening values, movements and disposals throughout the election.
Removing fair-value gains without tracking the asset basis or revocation adjustment.
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Is this Article enough on its own?
Usually not. Read it with the connected Law Article, definitions, any effective election and current NBR guidance, especially for an amount or deadline.
Does NBR guidance replace the Regulations?
No. Guidance explains application and supports procedures and examples, but current legislation and decisions prevail in case of inconsistency.