IFRS implementation has a huge impact on several aspects of a company, including financial reporting systems, taxes, treasury, cash management, and more. Since it requires a change that comprises employees, processes, and systems, IFRS impact assessment & implementation is a tremendous task for companies in the UAE. CDA is an all-in-one solution to assist companies to implement IFRS Impact Assessment in UAE considering the requirements of your business.
The recently applied International Financial Reporting Standards (IFRS) have impacted the UAE companies to a large extent. Many firms started the application process late and are now trying to pull alongside.
These new standards are causing a lot of precariousness in terms of both income statement and balance sheet presentation.
IFRS standards are International Financial Reporting Standards that encompasses 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 precise time.
So as to comply with the necessity of new challenges in the economy or for better performance of the financial statements, the International Accounting Standards Board (IASB) issues new IFRS or reissue the existing standards with suitable modifications.
IFRS Standards are very significant to businesses all over the world because it is a source of generally equivalent statistics. It pays to 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.
The following information are required to conduct the IFRS Impact Assessment: -
CDA experts deal with the following three big IFRS accounting canons that have hit UAE companies recently and caused unpredictability.
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 encompasses three main topics: -
IFRS 9 presents a rational approach for: -
CDA professionals cover the following areas for the IFRS 9 Financial Instruments Impact Assessment
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.
Recognize the contract with a customer
Recognize all the individual performance obligations within the contract
Decide the transaction price
Distribute the price to the performance obligations
Identify revenue as the performance obligations are fulfilled
CDA experts take over the following areas for the IFRS 15 Impact Assessment.
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.
CDA connoisseurs manages the following areas for the IFRS 16 Impact Assessment: -
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. Several organizations have been caught unprepared by the signature, scale, timing, and degree of the changes.
CDA experts are a one stop solution for this problem. CDA’s well qualified and certified professionals can take care of these areas and handle the situation in a better way to solve those issues that you face in the implementation process of IFRS according to the nature and needs of your business.
We broadly support our clients with meeting the IFRS reporting necessities and upholding and developing the related practices.
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 in Dubai 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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