Almarai Case study Almarai Company is a Saudi Public Shareholding Company (the

Almarai Case study

Almarai Company is a Saudi Public Shareholding Company (the Parent Company) incorporated in the Kingdom of Saudi Arabia on 1977, You can download the 2021 annual report for Almarai Company directly from the following web page:


Use the annual report to answer the following questions:

What are the main components of Almarai’s “Consolidated Financial Statements 2021”?

What are the standards and requirements that govern the preparation of the consolidated financial statements 2021?

Go through the “Independent Auditors’ Report to the Shareholders” and answer the following questions:

Who is responsible for the preparation and fair presentation of these consolidated financial statements?

Who is the external auditor of Almarai? Write a summary on the report of external auditor on the presentation of financial statements, what is their responsibility, and what are the standards that govern their audit?

Identify Net Profit (Net Income) attributable to shareholders of the parent company for the years 2021 and 2014. Did Net Profit Increase or decrease in 2021 compared with 2020. Based on this, was the year 2021 better or worse than the year 2020? Comment.

Stakeholders can affect or be affected by the organization’s actions, objectives and policies. List the different types of stakeholders and give examples from the Almarai annual report to justify your answer. Also explain the reason of their interest in the financial statements.

IAS 16 Property, plant and equipment identifies and describes two different models of accounting for tangible non-current assets. Discuss the importance of these two models for Almarai and describe the depreciation methods used by Almarai.

In preparing financial statements in accordance with GAAP, there are certain accounting policies that may require a judgment or estimation in their application. Give examples of Almarai estimates and assumptions reported in consolidated financial statements.

Contingent Liabilities are those obligations that are contingent on events that have not yet taken place. Discuss the contingent liabilities and also provide the contingent liabilities example from the Annual Report of Almarai.

Explain why the going concern basis is important in understanding Almarai financial statement; Support your answer with evidence from Almarai annual report.

Classify the revenue recognition method(s) used by Almarai as discussed in annual report. Explain the rationale underlying the appropriateness of methods used by Almarai.

Good Luck



Faculty of Business Studies – Arab Open University