The Authority has issued Ministerial Decision No.114 of 2023 on the Accounting Standards and Methods of Federal Decree-Law No.47 of 2022 on the taxation of corporations and businesses.
Through this decision authority has clarified the below:-
| Details | Explanations |
| Cash basis of accounting (Article 2) | The taxable person maintaining the accounting may prepare the financial statements on the cash basis of accounting if; If the revenue is below AED 3,000,000/- ( United Arab Dirhams 3 Millions)Any exceptional circumstances against an application to the authority. |
| Financial Statements ( Article 3) | Each taxable person must prepare standalone financial statements.Consolidation of financial statements has to be done by aggregating the financial statements of the parent company and each subsidiary that is a member of the tax group, eliminating the transactions between them |
| Applicable Accounting Standards (Article 4) | International Financial Reporting Standards (IFRS)A taxable person may apply IFRS for SMEs if the revenue is less than AED 50,000,000/- (United Arab Dirhams 50 Million) |
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Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.