IFRS implementation and advisory services in the UAE
The Government has always been committed to making UAE companies world economic leaders. It makes changes to working models, reporting requirements, tax systems and record-keeping according to local and international needs. In this context, the UAE authorities are setting new financial reporting standards for corporate accounting. Using new approaches, we provide expert IFRS implementation and advisory services in the UAE.
What is IFRS?
IFRS are International Financial Reporting Standards, the globally recognized reporting language. Almost 90 countries have confirmed that they apply International Accounting Standards, although around 120 countries are required to adopt IFRS. This reporting requirement has a direct impact on a company’s financial statements and balance sheet. The introduction of IFRS will facilitate the expansion of UAE companies into national and international markets.
IFRS rules in the UAE
Under the UAE’s Commercial Companies Law No. 2 of 2015, companies are required to apply international accounting standards. There are now no national generally accepted accounting standards in the UAE. Every registered company is required to practice internationally accepted accounting practices in its financial reporting. IFRS are mandatory for local public companies, SMEs and listed foreign companies in all UAE Emirates. Therefore, compliance with IFRS reporting requirements can avoid fines and penalties from the relevant authorities.
Significance of IFRS implementation
The implementation of IFRS has become essential to ensure compliance with domestic and international reporting standards. It is a globally understood language that ensures transparency and economic efficiency in business reporting. IFRS is essential for every organization, small and large, taking into account other important factors such as
- improving global interoperability
- Attracting investors from around the world
- improving the quality and reliability of financial reporting
- providing economic information to market participants
- Companies can improve the capital allocation of their accounts
Comprehensive list of IFRS series
For cross-border transactions, all companies operating in the UAE prefer to implement all IFRS standards on their books. Our chartered accountants help companies use a comprehensive list of IFRS series to ensure the free flow of international capital. Some of these are listed below:
- IFRS 1 – First-time Adoption of International Financial Reporting Standards
- IFRS 2 – Share-based Payment
- IFRS 3 – Business Combinations
- IFRS 4 Insurance Contracts
- IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
- IFRS 4 – Exploration for and Evaluation of Mineral Resources
- IFRS 7 Financial Instruments: Disclosures
- IFRS 4 – Operating Segments
- IFRS 7 – Financial Instruments
- IFRS 7 Consolidated Financial Statements
- IFRS 11 – Joint Arrangements
- IFRS 12 – Disclosure of Interests in Other Entities
- IFRS 11 – Fair Value Measurement
- IFRS 11 Regulatory Deferral Accounts
- IFRS 12 – Contract revenue
- IFRS 16 – Accounting for Leases
- IFRS 16 Insurance Contracts
Why do companies need IFRS implementation consultants?
Because there is a large worldwide checklist to ensure compliance with international reporting standards. All IFRS require skillful implementation of the standard without errors. Therefore, ordinary accountants often fail in this process and make many mistakes in the preparation of both the balance sheet and the income statement. This leads to penalties and damages the company’s reputation.
Expert accountants and consultants are needed to implement IFRS, which provides a protective shield for UAE companies. They are skilled in how to enter and calculate accounting and financial transactions in accordance with International Financial Reporting Standards (IFRS). This scenario fits perfectly with the work of our chartered accountants, who provide accounting and bookkeeping services to both local and international clients. We ensure that your accounting records comply with the latest international guidelines.
What are the benefits of adopting IFRS?
Adopting IFRS brings a number of benefits to your company and its operations, such as:
- Error manipulation in financial statements
Accountants check the accuracy of your financial statements by identifying errors, miscalculations and inappropriate estimates. The introduction of IFRS helps to close gaps and identify areas of non-compliance with international reporting standards. It also provides economic efficiency by giving investors a broader view of opportunities and risks around the world.
- Increase global transparency
UAE companies need to partner with multinational corporations to grow. Therefore, the adoption of IFRS is mandatory to present financial statements in the same internationally recognized language. This will increase comparability to make relevant economic decisions.
- Assisting management in decision-making
The implementation of IFRS provides management with a statistical overview for decision-making. Accurate financial statements are very helpful in developing future strategies and policies to ensure the profitability of the business.
BestaxCA IFRS consulting services in Dubai
BestaxCA has a team of chartered accountants and qualified consultants in Dubai, UAE. Our professionals are certified in financial reporting and several accounting systems. We offer a wide range of IFRS implementation solutions for specific types of businesses. Our consultants provide expert opinions and services on the complex implementation of IFRS 9, IFRS 17, and IFRS 16 to meet the needs of our clients. We have tailored accounting solutions in a number of jurisdictions.
We have the experience and expertise in complying with international reporting standards that differentiate us from others. We critically analyze your business model, review your accounting records, identify non-compliance issues and propose improvement plans. We will perform the following IFRS advisory services engagements:
- IFRS implementation and adoption
- Training on global accounting standards
- IFRS conversions
- Assistance with complex IFRS reporting requirements
- Impairment testing and modelling
- Preparation and review of financial statements
- Evaluating revenue recognition processes
- Provide guidance on the reclassification process
- Developing a sustainability plan
- Revise IFRS policies and strategies (if applicable)
- Assist in the implementation of accounting software
- Review of internal financial controls (IFC)
- Compliance with regulatory guidelines
- Prepare planned financial statements
- Development of chart of accounts
- Share-based compensation
As part of these services, we also provide tailored services depending on the accounting projects. We promise timely completion of the project and implementation of the amended regulatory provisions. We assure you that you will feel satisfied after receiving our IFRS services in any part of the UAE. Contact us today regarding International Financial Reporting Standards!