IAS 16-Property, Plant and Equipment (PPE) sets the principles for recognizing, measuring, and depreciating PPE in financial statements, ensuring consistent accounting while promoting transparency and comparability in financial reporting. Depreciation allocates the cost of an asset over its useful life, reflecting its gradual wear and tear. However, real-world changes such as revised estimates, revaluations, or… Continue reading Managing Depreciation of Property, Plant and Equipment: Accounting for Changing Scenarios

Introduction Accounting for consignment inventory is essential in accordance with IAS-2 (Inventories) as it provides guidance on how to recognize, measure, and value inventory. Since ownership remains with the consignor, they must report consigned goods as inventory. By valuing inventory at the lower of cost or net realizable value, IAS-2 helps consignors accurately report inventory… Continue reading Consignment Inventory Accounting Under IAS-2: Principles, Practices, and Disclosures

Overview of IAS 8 IAS 8 provides a framework for selecting accounting policies, accounting for changes in accounting estimates and policies, and correcting prior-period errors. Its objective is to ensure consistent application of standards, reliable financial reporting, and proper disclosure to enable users to make informed decisions. 1. Accounting Policies What Are Accounting Policies? Accounting… Continue reading Practical Insights into IAS 8: Handling Accounting Changes and Errors

Shareholders’ Current Account is an important term in the UAE, typically found on the liability side of the balance sheet. While it’s often grouped with shareholder-related items like share capital and statutory reserves, the Shareholders’ Current Account serves a more dynamic purpose. It records the ongoing financial interactions between the company and its shareholders, reflecting… Continue reading Shareholders’ Current Account in the UAE

As the UAE’s new Corporate Tax regime progresses and most companies move in Q4 of their first tax period, businesses must focus on various compliance areas, one of which is managing transactions with related parties and connected persons. Often, companies transfer goods or services within their group, and such transactions are governed by Transfer Pricing… Continue reading Transfer Pricing Under UAE Corporate Tax Law: Key Insights

All Business or Professional Entities, other than Companies incorporated under the Companies Act and Limited Liability Partnerships incorporated under the Limited Liability Partnership Act are considered to be Non-Corporate entities. This Technical Guide is relevant for the preparation of the financial statements of Non-Corporate Entities which include sole proprietorship firms, partnership firms, trusts, Hindu Undivided… Continue reading Unlocking Financial Insights: ICAI’s 2023 Guidance for Non Corporate Entities

The Financial Action Task Force (FATF) serves as the pre-eminent authority in establishing global standards for combating money laundering, terrorist financing, and proliferation financing. Through its recommendations, FATF guides countries in developing robust legal frameworks to address these threats within their jurisdictions. When countries fail to meet FATF’s standards they may find themselves placed on… Continue reading FATF Set to Remove UAE from Grey List: What It Means for the Region

Introduction: The business terrain in the United Arab Emirates (UAE) is evolving, with recent changes in corporate tax regulations shaping a new landscape. In this article, we present a comprehensive roadmap to assist businesses in navigating the intricacies of corporate taxation in the UAE. By offering practical advice and valuable insights, we aim to empower… Continue reading Navigating the UAE Corporate Tax Landscape: A Roadmap for Business Success

Introduction In a significant shift from its long-standing tax-free reputation, the United Arab Emirates (UAE) commenced its first tax period for corporate tax, marking a pivotal moment in its economic landscape. This historic move, aligning with international tax standards, not only redefines the UAE’s fiscal framework but also signals a strategic evolution in its approach… Continue reading A New Fiscal Era: UAE Commences First Tax Period for Corporate Tax

Transaction Monitoring (TM) is an essential component of customer due diligence and helps the entity develop a holistic understanding of the client-entity relationship. It is considered as a powerful tool to detect any suspicious activity or transactions, and hence financial crimes. Transaction Monitoring is a proactive step. Entities can detect crimes even before their occurrence… Continue reading IMPORTANCE OF TRANSACTION MONITORING