The International Accounting Standards Board (IASB) created the set of accounting standards known as IFRS, which stands for International Financial Reporting Standards. Dubai is one of many countries around the world that use IFRS. The following is information regarding Dubai’s IFRS:
IFRS Is Used In Dubai
Dubai is just one of many nations that utilize IFRS for financial reporting. The UAE Securities and Commodities Authority (SCA) mandates that all UAE-listed businesses adhere to IFRS. Additionally, businesses in the Dubai International Financial Centre (DIFC) are required to report their finances in accordance with IFRS by the Dubai Financial Services Authority (DFSA).
IFRS is Used by Large and Small Companies
IFRS is fundamentally intended for bigger organizations, yet private ventures in Dubai may likewise profit from utilizing the norms. Independent companies can utilize IFRS to make more straightforward and reliable fiscal summaries, which can assist them with getting to support and drawing in financial backers.
IFRS And Islamic Finance
Based on Shariah law principles, Islamic finance is based in Dubai. Although IFRS is a secular set of accounting standards, Islamic finance principles are compatible with them. In point of fact, a number of IFRS-based Shariah-compliant accounting standards have been issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
IFRS And Real Estate
Dubai’s real estate industry is a major one, and companies in this industry must follow IFRS. Specifically, organizations should follow IFRS 15 (Revenue from Contracts with Customers) while representing land deals.
IFRS And Oil And Gas
Additionally, Dubai is a significant player in the oil and gas sector. Organizations in this area should follow IFRS while setting up their budget summaries. When accounting for activities related to exploration and evaluation, businesses are particularly required to adhere to IFRS 6 (Exploration for and Evaluation of Mineral Resources).
IFRS And The Future Of Finance
Innovation and technology are likely to have an impact on the financial industry’s future. With initiatives like the Dubai Future Accelerators and the Dubai International Financial Centre (DIFC) FinTech Hive, Dubai is at the forefront of these developments. IFRS is likely to continue to play a significant role in financial reporting as the financial sector expands globally and becomes more interconnected.
How To Stay Up-To-Date With IFRS
Keeping up with IFRS can be hard because the standards are always changing. Regular visits to the IFRS website, where you can find the most recent news and changes to the standards, are one way to stay informed. Also, going to meetings and instructional meetings can assist you with keeping awake to date with the most recent advancements in IFRS.
Conclusion
Understanding the IFRS standards is essential for Dubai-based businesses and individuals working in finance and accounting. IFRS is a significant topic in these fields. Companies can produce financial statements that are more consistent and transparent by adhering to IFRS, which can assist them in securing financing and attracting investors. IFRS will likely play a significant role in financial reporting as Dubai continues to expand as a financial and innovation hub. ebs is available to assist you in learning about accounting in the United Arab Emirates. ebs also offers services such as accounting and bookkeeping services, VAT services, Auditing, Due Diligence audit services, and many more.
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