Financial Reporting in the UAE: Key Requirements and Deadlines
Businesses from all over the world are drawn to the United Arab Emirates, which is a vibrant center for trade and business. Dubai and Abu Dhabi are fastest-growing business hubs in UAE, as these cities present a plethora of chances for both existing enterprises and startups due to its advantageous location, sophisticated infrastructure and business-friendly atmosphere. But doing business in the UAE also entails meeting deadlines and regulations for financial reporting. Any business looking to maintain compliance and guarantee seamless operations must be aware of these duties. A company doing business in the UAE can also consider hiring the best chartered accountant firms in the UAE that are experienced in dealing with financial reporting and tax compliance.
An ideal and precise financial reporting is derived from a robust and efficient accounting method of a company. Financial reporting enables external parties to make effective decisions on investments, mergers, acquisitions, etc. In this article, we will delve into the key financial reporting requirements and deadlines in the UAE.
Understanding Financial Reporting in UAE.
Financial Reporting is the systematic presentation of accounting data to the government, shareholders, investors and other interested parties. In UAE, it is mandatory to follow the International Financial Reporting Standards. Following are the different types of Financial Reporting in UAE.
1. Financial Statements
Financial statements include the balance sheet, income statement, statement of cash flow and statement of shareholder equity. These are the standard reports required to be prepared during a statutory audit in the U.A.E either with the help of an in-house team or with by appointing approved auditors in Dubai.
2. Board of Directors Report
The companies with a management hierarchy prepare a report for the Board of Directors. This report presents a deep understanding and analysis of the entity’s performance and critical decision-making.
3. Management Decisions & Analysis report
The performance evidence reports the company’s historical decisions, competition analysis and market research.
4. Audit Report
Audit firms in Dubai must comply with all the guidelines for the statutory audit and be executed as per the government requirements. An audit is independent and license auditors in UAE works under the regulations of Ministry of Economy in UAE.
5. Corporate Governance Report
Under the accounting and auditing standards, the C.G.R. provides accountability for the company’s decisions, employees and management.
6. Notes to accounts
Each report, whether internal or external audit report, provides additional information about the accounting policies and procedures followed by the company.
Key Financial Reporting Requirements
Companies in the UAE can prepare annual financial statements with the help of accounting and auditing firms in Dubai, which typically include;
1. Balance Sheet
The balance sheet gives an overview of the assets, liabilities and equity of the business at a given point in time.
2. Income Statement
The income statement provides a period-by-period breakdown of the company’s revenues, expenses, profits and losses.
3. Cash Flow Statement
The cash flow statement shows the company’s cash inflows and outflows while emphasizing its cash management and liquidity.
4. Statement of changes in Equity
Indicates how the company’s equity, including retained earnings and dividends, has changed over the course of the reporting period.
5. Notes to Financial Statements
Provide additional context and detail to the financial statements, including accounting policies and significant transactions.
Key Deadlines for Financial Reporting
It is essential to fulfill financial reporting deadlines with the aid of licensed auditing firm in Abudhabi or Dubai in order to maintain compliance and prevent fines. Here are the key deadlines that companies in the UAE must adhere to;
Annual Reporting
1. Fiscal Year End
On December 31, most UAE-based businesses conclude their fiscal year. However companies are open to choose any financial year after completing the necessary formalities like amending the MOA.
2. Financial Statement Submission
Companies or firms in UAE are required to submit their audited financial statements to the appropriate authorities within the time frame given by relevant authorities.
3. General Assembly Meeting
In order to approve the financial accounts and address other important issues, companies in UAE must convene their annual general assembly meeting within the prescribed time limit.
Quarterly Reporting
For publicly listed companies, additional quarterly reporting requirements apply;
1. Quarterly Financial Statements
Within 45 days of the end of each quarter, publicly traded corporations are required to compile and submit their quarterly financial statements.
2. Review by Auditor
To guarantee correctness and conformity, an impartial auditor from Reputed audit firms in Dubai must examine the quarterly financial accounts.
3. Reporting on VAT
Businesses that have registered for VAT are required to follow the FTA’s special reporting guidelines, which can be easily accomplished through an experienced accounting companies in Dubai and FTA approved tax consultants in Abudhhabi.
4. VAT Returns
VAT-registered companies must file their VAT returns on a quarterly or monthly basis, depending on their annual turnover. The VAT return must be submitted within 28 days following the end of the tax period.
5. Payment of VAT
Any VAT due must be paid to the FTA by the same deadline as the VAT return submission.
Conclusion
In the United Arab Emirates, financial reporting entails following a number of guidelines and deadlines established by different regulatory agencies. Staying informed about regulatory changes, maintaining accurate records and meeting reporting deadlines are essential components of successful financial reporting in the UAE. This can be accomplished by appointing a reputable audit company in Dubai from the list of audit firms in UAE.
Jaxa Chartered Accountants, UAE focusses in supporting businesses with navigating UAE accounting regulations and streamlining financial management. Our experienced team is committed to offering bespoke solutions that match your specific objectives, assure compliance and drive financial success. Contact us today to learn more about how we can help you reach your financial objectives.
