Accounting Standards in the UAE are set to change, is your company ready?
The deadline is December 31st, are your companies books compliant with the latest accounting standards?
The end of the year is a hectic time for everyone and there’s no one busier a company’s accounts department. Ensuring that your books are accurate and compliant with international and local accounting standards is critical, not only to provide a clear picture to shareholders and investors but also to meet government requirements.
The biggest change to keep in mind is the implementation of International Financial Reporting Standard 16 (IFRS 16) from the 1st of January 2019 onwards. IFRS 16, which replaces the earlier standard International Accounting Standard 17 (IAS 17), now requires all companies to add all leased assets with leases longer than three years to their books.
According to IASB chairman Hans Hoogervorst, “These new accounting requirements bring lease accounting into the 21st century, ending the guesswork involved when calculating a company’s often-substantial lease obligation. The new standard will provide much-needed transparency on companies’ lease assets and liabilities, meaning that off balance sheet lease financing is no longer lurking in the shadows. It will also improve comparability between companies that lease and those that borrow to buy.”
As conducting a thorough valuation of property can take time, ranging from a couple of days for a single unit to up to 8 weeks for a master planned community, it is critical to choose the right partner to ensure that your assets are valued properly and without delay. The right valuation partner can offer you a fair and transparent valuation in line with industry best practices for your assets on a firm timeline, allowing you make certain that your books will be ready by the end of the calendar year.
Land Sterling is a leading firm of property consultants based in Dubai. Our team has work with leading companies in the UAE, offering valuation and consultancy services across varied sectors such as real estate, retail, hospitality and food & beverages. Email us at email@example.com or call +97143808707 to find out how we can help you!