The Saudi Arabian Accounting and Auditing Organization (SAARAO) and the Saudi Arabian Capital Market Authority (SCMA) have jointly agreed on a common set of International Financial Reporting Standards (IFRS), applicable for listed companies in Saudi Arabia and will commence implementation from 1 January 2018. The adoption of IFRS will apply to all listed companies with the exception of those that are quoted on the Tadawul exchange. The shifting of IFRS will allow for better comparability between the financial statements of companies listed in Saudi Arabia and those listed on international exchanges.