KUW CMA issued Resolution 11/2024 re valuation of impairment of assets guidelines.
Highlight of Resolution
Followed legislation and regulatory controls study re assets valuation in Kuwait.
Amended Module 5 (Securities Activities and Registered Persons), Module 8 (Conduct of Business), Module 12 (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010.
In addition to the Module 13 (Collective Investment Schemes),Module 15 (Corporate Governance) and Module Nineteen (Financial Technologies) as per Annex 1 attached.
Replaced Real Estate Assets Valuation in appnx 1 by Minimum Requirements for the Valuation or Assessment of the Impairment of Assets in Module 11 amended in appx 2.
Included controls, minimum limits that must be adhered to when evaluating, studying decline in assets value (not just real estate assets) included in financial statements.
Fund manager evaluates that fund’s assets has been added in line with appendix 1.
Specified the conditions for the transitional period granted for Collective Investment Schemes concerned with the provisions of this resolution to regularize their situation.
Detailed the resolution's scope of application for all asset impairment valuation except for the listed assets on an active market and units of collective investment schemes.
Detailed information re service provider, customer, evaluation process, data collection.
Provided additional information and guidelines regarding the valuation of real estate.
Effectiveness
Resolution takes effect in Oct. 31, 2024 and shall be published in the official gazette.
Oct. 2024 Reminder
On Oct. 5, 2024, KUW CMA reminded that new controls for assessing or studying the decline in the value of assets of Res 11/2024 will come into effect on Oct. 31, 2024.
Entities that prepare or submit asset valuation reports or asset impairment study reports must comply with the requirements of annex 1 as of Oct. 31, 2024,
Entities that submit reviewed interim or audited annual financial statements to KUW CMA, must comply when issuing any financial statements ending on Dec. 31, 2024.
Existing collective investment systems can transition from Oct. 8 to Oct. 31, 2024.
KUW CMA called concerned parties to expedite the completion of their procedures re methods' review for all asset impairment valuation before the dates specified for that.
Reminded of need for service providers to update the structure and content of the reports in a manner consistent with the minimum requirements of the new control.
Also, called on all parties concerned to follow up on awareness campaign's activities.
Regulators
KUW CMA
Entity Types
Auditor; Corp; Inv Co
Reference
PR, 10/5/2024; PR, Res 11/2024, 2/4/2024
Functions
Accounting; Actuarial and Valuation; Compliance; Financial; Legal; Operations; Reporting
