IFRS Impact Assessment & Implementation Services
IFRS Impact Assessment & Implementation Services in Dubai, UAE
IFRS standards play a crucial role in global financial reporting, providing a global language for business affairs so that company accounts become more comprehensive. IFRS implementation has a huge impact on several aspects of a company, including financial reporting systems, taxes, treasury, cash management, and more. Since it requires a change that comprises employees, processes, and systems, IFRS impact assessment & implementation is a tedious task for companies in the UAE. BOOKBLISS is an all-in-one solution to assist companies to implement IFRS Implementation and Impact Assessment in UAE considering the requirements of the business
What Is IFRS Implementation & Impact Assessment?
IFRS Implementation and Impact Assessment involve evaluating how adopting or modifying IFRS standards affects a company’s financial reporting, systems, and operations. This process ensures compliance with international accounting standards and provides stakeholders with transparent and comparable financial information.
Key Components of IFRS Services
- Assessment of Current Financial Practices: Analyzing existing accounting policies and procedures to identify areas requiring changes to align with IFRS.
- Impact Analysis: Evaluating the effects of IFRS adoption on financial statements, including assets, liabilities, equity, income, and expenses.
- System and Process Evaluation: Reviewing and recommending necessary adjustments to IT systems and business processes to accommodate IFRS requirements.
- Stakeholder Communication: Preparing reports and presentations to inform stakeholders about the implications of IFRS adoption.
- Training and Support
F A Q
Frequently Asked Questions on IFRS Impact Assessment & Implementation Services UAE
What is IFRS?
International Financial Reporting Standards are a group of accounting standards invented by the International Accounting Standards Board which became the worldwide standard for the preparation of financial statements of an incorporated organisation.
What are the benefits of converting to IFRS?
By adopting IFRS: Equivalent/Uniform presentation of financial statements, making comparisons easier, Companies with subsidiaries can use one accounting language company-wide, Companies can also benefit by using IFRS if they want to boost capital abroad/Foreign markets.
How does IFRS affect accounting?
IFRS defines revenue as a gross inflow of economic benefit leading to a rise in equity accounts, aside from direct equity contributions made by owners. This results in differences in how sales, service and deferred revenue are recognized and reported.
Why is IFRS important in business?
IFRS brings consistency to accounting system as a single accounting language. It assists businesses for making better financial decisions. The IFRS Foundation sets the standards to ensure:Transparency, Accountability, Efficiency in the business functioning
What will be the impact of implementing IFRS 16?
The introduction of IFRS 16 will cause a rise in leased assets and financial liabilities on the record of the lessee, while Earnings before Interest, Tax, Depreciation and Amortizations of the lessee increases. It grants considerable discretion and variety of options to mitigate the impact on key figures, thus addressing the knock-on effects. a number of the impact of IFRS 16 are often mitigated by restructuring business relationships. And, there also are options available should some lease contracts be maintained.
What are the information required to measure IFRS Impact?
Audited financials statements of previous two yearsAccounting manuals, All details of various types of Agreements/ Contracts/ relevant Invoices., Documents showing Classification of Financial Assets & Financial Liabilities , Other relevant information, supporting documents as and when required.
What is IFRS 9?
As per IFRS 9 – Financial Instruments and their classification, preparation is denoted which includes: Classification & measurement of Financial Assets & Financial Liabilities, Impairment of financial assets & liabilities, Disclosure requirements as per standard.
What is Expected Credit Loss (ECL)?
The concept of ECL falls under the context of IFRS 9. Expected Credit Loss (ECL) is the probability-weighted estimate of credit losses over the expected life of a Financial Instrument. It allows the company to foresee the possibility of risks and losses in its financial statements. Hence, reducing the impact of overstating the revenues
What are the macroeconomic factors considered during ECL Calculation?
The macro economic factors considered are: Inflation rate in the economy, Foreign exchange rate, Price levels of crude oil and GDP of the country, Government policies and implementation, Time value of money.