Title: Press Release: CMA’s New Guidelines for Valuation or Assessment of Impairment of Assets to Take Effect by the End of October

Kuwait, October 5, 2024 - The Capital Markets Authority (CMA) draws the attention of the entities subject to its supervision to the guidelines for valuation or assessment of the impairment of assets, issued in under its Resolution No. (11) of 2024, will take effect starting from October 31 of the current year.

It is worth noting that the CMA issued the aforementioned Resolution on  February 4th Regarding Guidelines for the Valuation or Assessment of the Impairment of Assets. This Resolution included replacing Appendix (1) “Real Estate Assets Valuation” of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 with the amended Appendix (1) for the same Module regarding “Minimum Requirements for the Valuation or Assessment of the Impairment of Assets” 

The entities concerned with complying with the requirements of the aforementioned resolution are classified into two main categories: the first category is required to comply with the requirements of the amended Appendix No. (1) as of 31/10/2024, and this category includes entities that prepare or submit asset valuation reports or impairment assessment reports. The second category is required to comply with the same when issuing any financial statements (annual or periodic) ending on 31/12/2024, and this category includes entities that submit their reviewed periodic or audited annual financial statements to the CMA.

The aforementioned Resolution granted existing collective investment schemes subject to its provisions a transitional period to regularize their situations in accordance with the new provisions during a period extending from October 8 to 31.

While reminding the concerned entities of the implementation of the provisions of its Resolution No. (11) of 2024 as the dates for their entry into force are approaching, the CMA urges them to expedite the completion of their procedures related to reviewing their methods of valuating and impairment studies for all types of assets before the specified dates. It also reminds asset valuation service providers of the need to take the additional measures required to update the structure and content of the reports prepared by them for entities subject to the CMA’s supervision in line with the minimum requirements of the new guidelines.

Finally, the CMA calls all parties concerned with implementing the provisions of Resolution No. (11) of 2024 to follow up on the various activities included in a comprehensive awareness campaign aimed at introducing the provisions of this Resolution, which will be implemented during the current month of October, and to follow up on the various awareness products related to the subject, which it broadcasts sequentially on its website and social media accounts, which vary between press releases and awareness messages, and to include a “Frequently Asked Questions” in the awareness section on the CMA’s website that includes comprehensive questions and inquiries on the subject and responses therein, in a way that contributes to achieving the required awareness and helps in the success of implementing the requirements of the aforementioned R  esolution.

Ends-

Notes to Editors:
The Capital Markets Authority (CMA) of Kuwait was established pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and its amendments, approved by the Kuwaiti Parliament in February 2010. Under this Law, the CMA regulates and supervises securities activities, ensures transparency, fairness, efficiency, and observes listed companies’ implementation of Corporate Governance regulations. The CMA also protects investors from unfair practices and violations of the CMA's Law.

Furthermore, the Law stipulates the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs pertaining to securities activities.

For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw