Reference to the Saudi Organization for Certified Public Accountants ("SOCPA") board resolution, which entails the full adoptions of the International Financial Reporting Standards ("IFRS") by entities listed on the Saudi Stock Exchanges, after SOCPA endorsement, for the financial periods beginning on 1/1/2017 or after. Moving forward from the Capital Market Authority ("the Authority") role in regulating and monitoring the works and activities of parties subject to the control and supervision of the Authority, and regulating and monitoring the full disclosures of information regarding financial securities and their issuers, the authority announces the Board of Commissioners resolution, which obligates listed entities to apply the cost model to measure the property, plant, equipment, investment property, and intangible assets upon adopting the IFRS for three years period starting from the IFRS adopting date, while continuing to abide by the IFRS, that are endorsed in Saudi Arabia, disclosure requirements, which require or encourage the disclosure of the fair value within the notes to the financial statements. The Authority will analyze the feasibility of continuing to apply the cost model upon completing the aforementioned period, or the feasibility of allowing the application of the fair value/revaluation model.