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Gist of Ministerial Decision No. 114 of 2023

Applicability of Accounting Method and applicable Accounting Standards

• Accounts needs to be prepared on Accrual Basis and Financial books should include
» Profilt & Loss account
» Statement of other comprehensive income,
» Balance sheet,
» Statement of changes in equity and
» Cash flow statement
• Cash basis of accounting is allowed only in exceptional circumstances if
» Revenue does not exceeds AED 3 million and
»Application is submitted to FTA.
• In case of Group Taxation, Consolidated Financials should be prepared after elimination of inter-group transactions.
• IFRS should be followed for preparation of financial statements.
• IFRS for SMEs needs to be followed if the revenue does not exceeds AED 50 million