According to International Financial Reporting Standards (IFRS), the companies in Dubai are liable for Preparing Income Statements every year. In agreement with IFRS, all businesses, companies, and enterprises are in demand to prepare financial statements. If the business is holding a transitional holding company then consolidation is not required. Then under the official accounting criteria, the holding company will prepare the consolidated financial statements. Right Way, Accounting Services in Dubai will provide proper information and assistance for statement preparation.
Structure of financial reporting
In UAE it is mandatory for all Freezone businesses for Preparing Income Statements in agreement with IFRS. It is possible for other companies or partnerships limited by shares in the UAE, subject to any other obligations, to prepare their financial statements according to any normally excepted structure. However, most of these units do follow IFRS. In the case of subsidiaries registered in different territories, the financial statements are prepared according to the structures followed by the parent company.
Reports necessary for Financial Statements
For the purpose of Financial Statement Preparation, a set of reports must be submitted. These must compromise the following documents,
- Income Statement: This provides information about the expenses and income of a company for the past year.
- Balance Sheet: It contains all the liabilities, assets, and equity of a company, providing a comprehensive assessment of a firm’s capital structure. This reports the company’s cash flow among other things.
- Cash flow statement:The cash flow statement reveals how the cash was used and spent by the company for a period of time or a year. Varied financial notes are compromised for an accounting year.
- Shareholder’s equity statement:These reports provide information regardings the company transactions that implicate the equity account for a specific period. There will be a detailed report of the dividends and transactions included in the report.
All these reports are normally presented with other financial notes and analyzed for a specific accounting period. Want to know more about these kinds of reports feel free to contact our team, Right Way Bookkeeping. We have experts who can guide and provide complete details on Preparing Income Statements.
Why Right Way?
Want to benefit from complete accounting solutions for your business in Dubai? We are here to help you. Our main aim is to provide you with quality service with our expert team. We provide services like bookkeeping, auditing, VAT registration, tax consulting, accounting, and more. If you want to have a complete idea regarding this contact Right Way Bookkeeping.