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IFRS for SMEs or full IFRS

Which accounting standard should my growing company use?

The situation

Businesses with revenue under AED 50 million can use IFRS for SMEs; those above use full IFRS. Smaller ones up to AED 3 million can use cash basis.

The law

  • Ministerial Decision 114 of 2023: Standards by revenue band

What it means for you

IFRS for SMEs is simpler and accepted for Corporate Tax. Example: a company with AED 20 million revenue can use IFRS for SMEs; if it plans to raise funds, full IFRS may suit investors. Choose once and keep it consistent.

What to do

  1. Check revenue band.
  2. Pick the standard allowed.
  3. Consider investor needs.
  4. Apply consistently each year.

We can do this for youBookkeeping, accounting standards and audited financial statements: what the FTA, free zones and banks require: AED 800

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