MCI Announces Launching the Program of Electronic Input of the Financial Statements "qawaem"
The Ministry of Commerce and Industry (MoCI) launched “Qawaem”, an online platform that will serve both the public and private sectors by boosting transparency in the Saudi market and serve businesses by streamlining the process of filing financial statements of commercial entities operating in the Kingdom of Saudi Arabia.
The ministry announced the launch of online submission of financial statements from businesses as of Thursday 10/3/1435 AH, 01/01/2015 G, at the Financial Statement Filing Center via review offices that are assigned to review the companies' accounts on the MoCI website as the first stage. The receipt of paper financial statements will end as of this date.
HE Minister of Commerce and Industry Dr. Tawfiq bin Fawzan made a decision approving the Financial Statement Filing Program via “Qawaem” platform as a one program for e-filing. HE Minister and Chairman of the Board of Directors of the Saudi Organization for Certified Public Accountants issued a decision amending Article 9 of the executive regulations of the certified accountant law. The article states that a person registered at the certified accountant registry with the ministry shall provide the financial statements and reports by uploading the same on the e-filing application Qawaem.
The MoCI laws require all the businesses operating in the market to submit financial statements on annual basis through a multi-step process. First, the business prepares its financial statement in hard copy and then submits it to a certified accountant for approval. Then, the approved financial statement is hand-delivered to the Ministry of Commerce and Industry. Through “Qaawaem”, the process can now be done online.
The project was executed by the MoCI in cooperation with the Saudi Organization for Certified Public Accountants (SOCPA) and the General Authority of Zakat and Tax (GAZT). It converts the financial statements from hard copy to soft copy using the (XBRL), an internationally used language for disclosure of financial statements. The e-filing of financial statements supports credibility and provides information about the financial results of commercial entities operating in the Saudi market. In addition, it provides a valuable and accurate economic database that can be used by planners.
According to the ministry, “Qawaem” will prove to be a significant economic tool for decision makers. The project went through several phases and enhancements and will continue to improve it in the next stages.
Qawaem will provide highly feasible services that would provide a variety of options to help entities make contracts with all governmental or non-governmental bodies. The platform will also ensure accuracy of the financial information of an establishment and thus will build up confidence between it and the entity it deals with.
Through this platform, the MCI tries to help accounting offices improve their performance and qualify and train national cadres according to the highest standards of this field to live up to the KSA economic position. The ministry is also keen to offer multiple options to all sectors which have to have an access to the financial statements of an establishment operating in the KSA. The ministry indicated that the information provided by Qawaem will help the local, regional, Arab or international economic classification organizations to determine the correct classification of Saudi establishments that is in line with the strong economic position of the KSA. This would enable the KSA to obtain more advantages of this classification and help these establishments get the desired benefit at the financial and economic levels.
Designing Qawaem platform, the MCI did not omit to carefully monitor the financial statements and follow up establishments at the financial level. It also recognized significance of the economic feasibility that would enable corporate governance. Audited by certified accountants before being uploaded, the financial statements will provide accurate information and ensure compliance with the ministry's regulations and rules especially those regulating the dates of filing financial statements and following the Saudi accounting standards. This would ensure high economic feasibility. The MCI calls on those who want to be part of Qawaem to visit the URL qawaem.sa.