Sahara has disclosed an update on the transformation process to IFRS, highlighting that retained earnings will decrease by SAR277mn. The decrease was attributed to the: i) adjustment in the useful lives of assets; ii) write-off of a part of capitalised costs related to property, plant and equipment; and iii) recalculation of the provision for end-of-service benefits. The company also noted that it is still in discussions with the financial advisor about the impact of IFRS 10 on the consolidation of financial statements, and that there is a possibility it could result in deconsolidation of a subsidiary (currently Sahara only consolidates Al Waha). The company noted that the accounting changes will not have an impact on the company’s future operations. Finally, the company pointed out that it has completed all the necessary procedures to publish IFRS-compliant results starting 1Q17. (Tadawul)      Sahara Petrochemicals: SAR15.68 as of 31 Jan. 2017, Rating: Neutral, TP: SAR10.50/share, MCap: USD1,835mn, SPC AB/2260.SE