Definition

Accounting Standards are the financial reporting principles businesses must follow when preparing statements used for UAE Corporate Tax and audits.

Key points

• Most UAE companies must use IFRS (International Financial Reporting Standards).
• Ensures comparability and transparency in financial results.
• Small entities may apply simplified IFRS if approved by authorities.
• Affects the calculation of taxable profit and deferred tax.

Practical example

A UAE consultancy adopts IFRS for revenue recognition, ensuring income is properly aligned with Corporate Tax filing requirements.

Why it matters

Using approved accounting standards guarantees compliance and credible financial reporting.