Sections 5–7 — Capacity, depreciation, residual costs

§5 Capacity building#

• Saudi training: trainee labor stays in §3; training fees move here. Sample 10 trainees + their certificates.
• Supplier development: contracts and deliverables. Confirm beneficiaries are in-Kingdom suppliers.
• R&D in-Kingdom: project charter + time-sheets + lab invoices.

§6 Depreciation & amortization#

• Obtain the asset register classified as local vs import at acquisition.
• Tie the period depreciation to the FS depreciation expense; reconcile any difference.
• For mixed-origin assets (e.g. installed cost in KSA + imported equipment), split per the LCGPA classification rules.

§7 Residual costs#

Anything that didn't fit in §3–§6 is here. Inspect the largest items and ensure none should have been disclosed as suppliers or labor.