Dubai based LLC (Limited Liability Companies) should prepare their annual financial statements based on International Financial Reporting Standards (IFRS). Enterprises are expected to prepare and organize an improved audited financial statement each year as per IFRS. In the case of the transitional holding company, consolidation is not necessary. Holding companies prepare their financial statements under the accounting criteria. We are a professional accountants team who can provide you with appropriate information and assistance to prepare annual financial statements in Dubai.
The Structure Of Financial Reporting
Businesses in the Free zone in UAE should necessarily prepare their annual financial statements based on IFRS. Even though most companies limited by shares have the liberty to prepare financial statements according to the normally expected structure, most of them prepare it based on IFRS. Subsidiary corporations registered in other places can prepare their financial statements following their holding companies.
Audit Prerequisite For Listed Enterprises In Dubai
The following types of companies should conduct an audit at any time of the financial year in the UAE
- Limited Liability Companies
- Partnerships or Affiliations limited by shares
- Joint-stock companies
- Every other business mandated by law
Small companies have the liberty to be audited when required by any financial institution, supervisory unit, or to meet certain conditions.
The Objective Of Auditing Your Business In Dubai
The main aim of auditing is to create an impartial and independent view of the information in the financial statements regarding whether they furnish the actual rendition of the business. Auditors can point out if the payments, incomes, profit/loss, obligations, equity, and possessions listed are real or any false statements.
Common Set Of Reports For Financial Statements
A set of reports must be issued for the annual financial statements, encompassing the cash flows, income statements, and balance sheets. Additional information about the same can be found below
- The balance sheet: It is the most important financial statement as it reports the company’s cash flow. The balance sheet encompasses assets, liabilities, and equity disclosing the capital structure of the organization.
- Income State: This provides all the information required about the company’s activities, blanketing information about income and expenses for the whole year.
- Shareholders Equity Statement: This provides information on transactions that involve the equity accounts for a specific time, with dividends and transactions involved.
- Cash flow statement: This statement comprises of varied financial notes and discloses how cash was used in a time frame.
Other financial notes and analyses accompany these reports for a specific time frame. They are part of the annual financial statements in Dubai. Our accountants in Dubai can help you if you wish to know more about these. Our professionals can help you with complete guidance for all the financial affairs for your Dubai based company.
Beyond Numbers can help you in Annual Financial Statement Preparation , Call us today for a free consultation on +971 50 452 0632
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