Logo of Astra Industrial Group 



Astra Industrial Group announced finalizing the accounting treatment with various auditors to reach an estimate on the gain with respect to the agreement signed by its 65%-owned subsidiary Al Tanmiya for Steel Industries with Al-Ghad Al-Mutakamel Company for General Trading, Iron, Steel and Metal Industries.


 


The agreement relates to exit Al Tanmiya’s investment from Al Anmaa Company for General Construction Materials Industry Ltd. (Alanmaa Co.)


 


In compliance with IFRS standards, Astra and Al Tanmiya had to accrue estimated tax liability and expenses that will be imposed on the sale of Al Anmaa, according to a bourse filing.


 


As the group has completed the estimation of these expenses and tax liabilities and has cleared accounting treatment with the auditors of Astra and Al Tanmiya, the results of the second quarter will include a consolidated gain of SAR 182.9 million from the sale of Al Anmaa of which the group share is SAR 170.2 million as per international financial reporting standards and reporting requirements in the related countries.


 


It noted that, for future update or progress on the process completion of discontinued operation accounting treatment and best estimates of transaction expenses, it should be referred to the group’s subsequent quarterly and full-year financial statements.


 


The company announced in February that Al Tanmiya signed a conditional agreement with Alghad Almutkamel to exit its investment in the 100%-owned Al Anmaa Co. in Iraq, which owns steel and power plants in Iraq.