IFRS and Accounting Methods of Bookkeeping in UAE

The UAE has become one of the top destinations to conduct international business.? Therefore, it is essential for a business to maintain consistency with their financial reporting. This is where Bookkeeping comes into play. Bookkeeping is an essential part of running a business, allowing companies to track their daily expenses and sales to ensure effective financial management.?

International Financial Reporting Standards (IFRS) is a globally recognized set of accounting guidelines to follow. IFRS is a thorough method that controls how a business’s financial statements are recorded and presented, helping to make informed decisions. IFRS is used to ensure that companies across the globe can be compared on an even level. In the UAE, IFRS is mostly practiced with larger companies involved in international trade.??

Following this framework is key to ensuring that investors, regulators and other stakeholders are presented with reliable financial statements.Consistency is key in bookkeeping and following IFRS guidelines will prevent the risk of manipulation, errors and discrepancies. With the UAE being a hub for international trade, following a universal accounting standard will also improve the credibility and reliability of financial reports. Therefore, it is crucial that companies adhere to IFRS guidelines for bookkeeping purposes.?

The introduction of corporate tax in the UAE also emphasizes the importance of maintaining accurate financial records. According to the UAE Federal Tax Authority’s guidelines on accounting standards, all businesses that exceed AED 50 million in annual revenue must apply for full IFRS. For businesses that do not exceed this figure, they have the option to use a condensed version of IFRS for small and medium sized entities.?

For businesses operating in the UAE, maintaining proper bookkeeping and compliance with IFRS is crucial for financial accuracy. Following IFRS will ensure that your financial reporting is aligned with global standards. Our team of experienced bookkeepers will provide you with accurate bookkeeping services to ensure your company is in compliance with UAE regulations.?