The guidance for capitalizing borrowing costs under IAS 23 and US GAAP (ASC 835-20) is closely aligned at a high level, both require capitalizing borrowing costs directly attributable to acquiring, constructing, or producing a qualifying asset. But underneath that similarity sit several real differences that Audit Firms in Dubai and other entities need to understand … Continued
Internal audit remains one of the most valuable checks an organization can have, giving management a clear, objective view of the company’s financials and operations. Traditional internal audit, largely manual and performed periodically, has been the backbone of that assurance for decades. It’s also just one part of a modern auditor’s toolkit today. Continuous auditing … Continued
In Dubai, jointly owned properties, buildings and communities managed by an Owners Association, are required to collect service fees from residents to cover maintenance and shared facility costs. These fees are typically charged by a facility management company on behalf of the Owners Association (OA). Under Dubai’s Jointly Owned Property Law (Law No. 6 of … Continued
A joint effort between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) produced IFRS 15, Revenue from Contracts with Customers, and its US counterpart ASC 606, Revenue from Contracts with Customers. The two standards are substantively converged, with only minor differences between them. The collaboration was driven by two goals: … Continued
For accounting and financial reporting purposes, revenue recognition isn’t the only IFRS standard that matters, financial instruments under IFRS 9 carry just as much weight. Contrary to what many assume, IFRS 9 affects a wide range of accounting services in Dubai and the UAE, not just banks and financial institutions. A UAE company can face … Continued
Top Audit firms in Dubai, UAE use interim financial statements to update on performance between annual financial statements. IAS 34 sets out how internal auditors and audit firms in Dubai should prepare interim financial reports under IFRS. What IAS 34 does not specify is which entities must prepare interim reports, or how often. In practice, … Continued
Disagreements among partners are common, and they frequently lead to financial losses if left unresolved. Auditing is not just a compliance requirement in a partnership, it is one of the most effective ways to prevent disputes from escalating in the first place. Many partnership firms now build a specific auditing provision into their Partnership Deed … Continued
This article explains how to identify cash-generating units (CGUs) under IAS 36. We look at how Audit Firms in Dubai & UAE assign assets and goodwill to CGUs during an impairment review. Identifying CGUs correctly can significantly change the outcome of an impairment review, but the process requires judgment, and the CGUs an entity settles … Continued
Audit firms in Dubai work with a capex threshold policy that determines when a purchased asset is capitalized on the balance sheet rather than expensed straight to profit or loss. Suppose a company sets its threshold at AED 10,000 and then buys several assets at AED 7,000 each. On the surface it looks fine to … Continued