IFRS implementation and advisory services in the UAE

IFRS standards are essential to international financial reporting because they provide commercial dealings with a universal language, resulting in more thorough firm reports. The adoption of IFRS has a significant effect on a company’s cash management, treasury, taxes, financial reporting systems, and other areas. For businesses in the United Arab Emirates, IFRS impact assessment and implementation are laborious tasks as they necessitate changes to personnel, procedures, and systems. With consideration for the needs of the company, BestaxCA is a comprehensive solution that helps organizations execute IFRS Implementation and Impact Assessment in the UAE.

International Financial Reporting Standards Services

The way the balance sheet and income statement are presented is becoming increasingly unstable as a result of these new rules.

The International Financial Reporting Standards, or IFRS standards, are a collection of accounting titles that specify how certain transactions and other accounting processes must be recorded in financial statements. When a novel or updated accounting standard is implemented in a firm starting at a specific time, it is guided.

The importance of impact assessments for IFRS

To address emerging economic concerns and enhance the quality of financial statements, the International Accounting Standards Board (IASB) either releases new International Financial Reporting Standards (IFRS) or updates current standards with appropriate adjustments. An evaluation known as an IFRS impact assessment is often conducted when a new or amended accounting standard is used in business as of a specific date.

Information needed to carry out the Impact Assessment of IFRS:

To perform the IFRS Impact Assessment, the following data is needed: –

• Manuals for accounting
• The previous two fiscal years’ audited financial statements
• Financial Assets and Liabilities Details
• Specifics of any contracts or agreements the business has with its clients Specifics of relevant invoices
• Specifics of contract income Any further relevant data, if any, and accompanying documentation

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BestaxCA’s IFRS Implementation and Impact Assessment services

BestaxCA has a team of competent specialists with expertise in following international standards to ensure proper implementation of IFRS and impact assessment activities. The following three significant IFRS accounting canons that have lately affected UAE businesses and created uncertainty are dealt with by BestaxCA specialists.

• Financial Instruments Impact Assessment is covered under IFRS 9.
• Impact evaluation of IFRS 15, which addresses revenue from contracts with customers.
• IFRS 16, which addresses the evaluation of leases.

IFRS 9

New rules introduced by IFRS 9 impact entities in all industry areas. While it is true that organizations in the financial sector have the greatest consequences, it is often made misconception to believe that there are only minor consequences elsewhere.

carrying out a thorough analysis of the implementation of IFRS 9.

• Helping to quantify changes for both categorization and measurement (C&M) and estimated credit losses (ECL) at the time of first application and reporting date.
• Helping to carry out hedge effectiveness testing and compliance with the new hedge regulations.

IFRS 15:

It has a complete set of standards that differ from the current IFRS guidelines and is centered around a new “5-step” model. While some of the modifications are more readily visible, others result from minute adjustments to the specifics that are not immediately noticeable.

• Carrying out a thorough analysis of the implementation of IFRS 15.
• Helping to quantify modifications related to revenue recognition and measurement at the time of first application and reporting date.

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IFRS 16:

The way lessees account for operational leases in financial reporting is drastically altered by IFRS 16 Leases. With a few specific exceptions, the new standard essentially eliminates the categorization for operating leases and mandates that lessees demonstrate a lease liability and a matching right-of-use asset for every lease.

To prepare their financial statements utilizing this new accounting standard, entities must determine what steps need to be completed. The modifications may involve complicated details and affect more than simply the accounting procedure.

• Carrying out a thorough impact analysis of IFRS 16 implementation.
• Helping to quantify changes related to the recognition and measurement of lease obligations and right-of-use assets at the time of first application and reporting date.
• Offering an IFRS 16 and leasing management solution.
• Offer assistance for managing leases.

Why is BestaxCA?

Because many UAE businesses did not begin the process early, it has been extremely difficult for them to adapt to the new IFRS standards. It implies that a great deal of work needs to be completed before the year’s end as opposed to throughout the year. It also requires a significant amount of IT effort. The changes in terms of signature, magnitude, timing, and degree have taken some organizations off guard.

Experts in BestaxCA are a complete resource for this issue. Depending on the nature of the problem, BestaxCA’s highly skilled and trained specialists may handle these areas and manage the situation more effectively to resolve any challenges that arise throughout the IFRS implementation process.

Conclusion

In conclusion, companies must adjust to preserve compliance and guarantee the openness and consistency of their financial reporting as the UAE harmonizes its financial reporting requirements with international best practices. Businesses in the UAE may improve their financial credibility and make well-informed, strategic decisions by using IFRS. Oblique Consult is here to help you navigate this life-changing experience by transforming obstacles into chances for achievement and financial clarity.