Offering IFRS advisory services in Dubai, UAE, CDA supports our clients to meet the IFRS reporting requirements, simplifying their accounting processes and improves their business efficiency and accountability. Our team of expert account and auditing professionals renders comprehensive services to assist our clients with all aspects of IFRS.
IFRS is an International Financial Reporting Standards that incorporates a set of accounting titles that decide how transactions and other accounting procedures are required to be entered in financial statements. It is steered when new-fangled or revised accounting standard is executed in any business from a particular time. Following the IFRS can add a lot of benefits to your organization, some of which are mentioned below: -
It improves the international comparability and quality of financial information and enables investors to make up-to-date economic decisions.
IFRS Standards reinforce the accountability by lowering the information gap between the providers of capital and the receivers of their money.
And IFRS Standards ensures economic efficiency by helping investors to recognize opportunities and risks across the world and improving capital allocation.
IFRS ensures accuracy in preparing the financial statements of a business. As a common belief the preparers of the IFRS financial statement are honest and competent, and they follow the code of ethics and ask the preparer to be objective and truthful in their interpretation of the financial transactions, which will result in less fraudulent financial statements.
The UAE Commercial Companies Act 2015 was enacted to make IFRS compulsory for listed companies and LLC companies. So, the IFRS have significant impact with VAT compliance in the UAE. It is therefore vital that your knowledge in VAT be supplemented with the key information for recognition of significant accounts in financial reporting. This will help companies comply with VAT regulations and easy and credible VAT filing.
The followings are some of the major International Financial Reporting Standards: -
|IFRSs & IASs||Objectives & Scopes|
|IFRS 2||Share-based Payment needsanentitytoidentifyshare-basedpaymenttransactions such as granted shares, share options, or share appreciation rights in its financial statements|
|IFRS 3||Business Combinations shows the accounting when anacquirerobtainscontrolof a business either on an acquisition or merger.|
|IFRS 5||Non-current Assets Held for Sale and Discontinued Operations establishes how to account for non-current assets held for sale or for distribution to owners.|
|IFRS 6||Exploration for and Evaluation of Mineral Resources allows entities adopting the standard for the first time to use accounting policies for exploration and evaluation assets that were applied before adopting IFRSs. It also modifies impairment testing of exploration and evaluation assets.|
|IFRS 9||FinancialInstruments:Recognitionand Measurement presents the classification of financial assets & the business model in whichanassetisheldandapplicableto business in all industry segments in general.|
|IFRS 10||Consolidated Financial Statements establishes the requirements for the preparation and presentation of consolidated financialstatements,requiringentities to consolidate entities it controls.|
|IFRS 14||Regulatory Deferral Accounts allows an entity which is a first-time adopter of International Financial Reporting Standards to continue to account, with some limited changes, for 'regulatory deferral account balances' in accordance with its previous GAAP, both on initial adoption of IFRS and in subsequent financial statements.|
|IFRS 15||Revenue from Contracts with Customers applies to all contracts with customers.|
|IAS 2||Inventories contains the requirements on how to account for most types of inventory. .|
|IAS 16||Property, Plant and Equipment establishes the accounting treatment for most types of property, plant and equipment.|
The financial reporting standards becomes essential for global and international reporting because it is a source of generally equivalent statistics. It ensures economic efficacy and helps investors recognize chances and risks across the world to improve capital distribution. IFRS sends general guidelines for the footing of monetary statements.
So, it is essential in the following ways: -
Financial information is vulnerable to manipulation, differences in interpretation, errors or inadequate basis of estimates. In order to prevent these irregularities in the financial accounts, there should be a consistent way of deciding the measure and recognition and how financial information are presented in the financial statements.
All the companies have dealing with MNCs in different parts of the world. So a global accounting standard is necessary to get the credibility of the reports and to enhance trade and global economic growth. This will enable all the users to use the same standards to analyze the financial statements of any company.
IFRS ensures that business activities are treated in a consistent manner or an explanation is given for the recognition. It is important that explanation given for the recognition of a financial items in the report can help users of financial statements make correct decisions.
IFRS 15 is an International Financial Reporting Standard addressed by the International Accounting Standards Board. It provides guidelines on accounting for revenue from contracts with customers. It became effective in January 2018.
The purpose of IFRS 15 is to create the values that a business shall use to report valuable information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows coming out of a contract with a customer.
IFRS 15 Substitutes
|IAS 11||Construction contracts|
|IFRIC 13||Customer loyalty programs|
|IFRIC 15||Agreement for the construction of real estate|
|IFRIC 18||Transaction of assets from customers|
IFRS 16 is an International Financial Reporting Standard addressed by the International Accounting Standards Board. It gives directions on accounting for leases. IFRS 16 was issued in January 2016 and is effective for most companies that report under IFRS since 1 January 2019. IFRS 16 replaced the earlier leasing standard, IAS 17.
IFRS 9 is an International Financial Reporting Standard issued by the International Accounting Standards Board (IASB). It reports about the accounting for financial instruments. The IAS 39 Recognition and Measurement is replaced with IFRS 9 standards.
IFRS 9 presents a rational approach for: -
The execution of the new IFRS standards has been a huge task for companies in UAE to adopt because many had not started the process early. It means that there is a lot of work to be done by the end of the year rather than throughout the period. It also necessitates a lot of work from the IT side. These new standards are causing a lot of unevenness in terms of both income statement and balance sheet arrangement.
CDA is a team of Big 4 experienced professionals who can offer a better IFRS service for your business and make it to follow the global standards to ensure that your business complies with the tax regulations and is free from all tax burdens.
CDA Accounting & Bookkeeping Services LLC also efficiently handle CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services, and Tax Filing & VAT Consultancy services on time according to the convenience of our good clients. Our customer-centric approach is well appreciated, and we promise a better than the best service to your business.
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