The Disciplinary Committee constituted under the Capital Market Law issued a decision warning National Real Estate Development Company SAOG for failing to implement IAS 40, which affects the authenticity of the financial statements of the company disclosed to investors, which is breach of Article 209 of the Commercial Companies Law and Article 282 of the Regulation of the Capital Market. The decision obliged the company to correct the financial statements in accordance with the above-mentioned accounting standard within 60 days.

Article  209 of the Commercial Companies Law provides” A company shall keep financial records showing its transactions and financial position, provided that the financial statements shall be prepared according to international financial reporting standards, and shall be audited according to international audit standards, and the concerned body may add any other standards which shall not be inconsistent with these standards.”

Clause 1 of Article 282 of the Capital Market Regulation provides “Financial statements shall be prepared in accordance with International Financial Reporting Standards (IFRS)) and shall include all required information to fairly reflect the financial position of the company and its performance during the relevant financial period. Any changes in the accounting policies of the issuer and their effects shall be disclosed in the financial statements.”

CMA emphasized the importance of compliance of the public joint stock companies listed on the Muscat Stock Exchange with the laws and regulations of the capital market to safeguard all the participants of the stock exchange.