Companies in Dubai are bound to make annual financial statements according to IFRS (International Financial Reporting Standards). If you are managing a company in Dubai and searching for the best services for preparing financial statements according to IFRS, KSP Accounting & Bookkeeping has you covered! Hop on below to explore the preparation criteria, IFRS standards, and an overview of our services in depth.
Financial Reporting Structure
All the free zone businesses (except for companies or partnerships limited by shares) in the UAE are obliged to prepare their annual IFRS financial statements. Moreover, the subsidiary corporations of companies registered in territories can prepare their statement based on the structure followed by the parent company.
Audit Requirements for Listed Companies in Dubai
Aside from the above-mentioned rules, the following companies must have an audit every time in the financial year:
- joint-stock companies;
- limited liability companies
- affiliations or partnerships limited by shares
- any other business which is mandatory by any other law.
Note: Smal businesses are audited when required in special scenarios.
The Purpose of an Audit for Businesses in Dubai
The primary reason for an audit is to get an impartial and unbiased review of the information featured in the financial statements. It demands the conduction of detailed analysis, ensuring that the info reveals fair interpretations of the financial condition of that business.
However, if you are planning to open a firm in Dubai and looking for audit companies, we suggest checking out KSP Accounting & Bookkeeping! Our experts will create detailed financial reports and can also review a pre-made one to check for its fairness. With us, you can unravel potential risks that can prove to be a headache in the future.
Updated Regulations after VAT Implementation in Dubai
In 2018, a VAT tax rate of 5% was introduced in the UAE, followed by a series of new regulations, including VAT returns. However, if your business is not subjected to VAT registration, the compliance of annual financial statements must be considered. This means that an additional audit report featuring income statements, payroll calculations, and other financial adjustments must be part of the annual financial statement.
KSP professionals can offer support for preparing the report in Dubai. We can also provide outsourcing accounting services for your businesses. So, be sure to contact us if you need any of these services!
Report Set Included in the IFRS Financial Statements Dubai
Following is the general list of the components of IFRS financial statements Dubai:
Income State: Offers information about the income and expenses for a year.
Balance Sheet: It features the company’s equity, assets, and liabilities, uncovering an in-depth evaluation of the firm’s capital structure and offering insights into its cash flow.
Cash Flow Statement: It features info about the multiple ways in which cash has been used in the company over a specific span, maybe an accounting year.
Statement for Shareholder Equity: This statement offers information about the transactions involving equity accounts for a specific period. It will also list the transactions and dividends involved.
If you need more information about the reports, you can consult with one of our accountants. They will offer complete guidance and support for all accounting matters.
When the Financial Statements Are Prepared?
Normally, financial statements are prepared before the fiscal year ends, leaving time for certain modifications and adjustments. A fiscal year refers to 12 months in which an accounting cycle occurs; in Dubai, it begins on January 1st and ends on December 31st.
Why Choose KSP Expert to Prepare Financial Statements?
KSP experts are pro at not only handling financial matters optimally but also preparing detailed financial statements for companies in Dubai. We include multiple reports in our statements, and copies are offered to the company’s shareholders and managers. The best part about our analysis is that our team is unbiased and keeps the client’s data secure. So, if you want to prepare your annual financial statement, contact the KSP team now!