What is Aggregated Accounts?
Aggregated accounts are financial statement lines that combine multiple similar items into a single presented figure for clarity and brevity, with the underlying detail disclosed in supporting notes or schedules. Aggregation balances usability of the primary statements against the need for detailed transparency about composition.
How It Works
- Group similar items (e.g., individual receivables, fixed asset classes) into one line.
- Disclose the breakdown in the notes, including movements, classes, and significant components.
- Apply materiality: separately present material items, aggregate immaterial ones.
- Maintain consistency across periods to enable comparison.
- Provide both current and comparative period detail in the notes.
Saudi Context
Saudi listed companies present aggregated lines such as Property, Plant and Equipment (PP&E), Trade and Other Receivables, and Trade and Other Payables, with detailed sub-component disclosure in the notes. SOCPA-aligned IFRS 1.55 governs the level of aggregation. The CMA may push for additional disaggregation where it believes investor understanding is impaired.
Example
A company’s balance sheet shows Trade and Other Receivables of SAR 18 million. Note 12 breaks this down: trade receivables SAR 15.0m, VAT receivable SAR 1.5m, prepayments SAR 1.0m, employee advances SAR 0.3m, other SAR 0.2m, with movement detail and impairment allowance.