Since Corporate Tax arrived, “the accounts” are no longer a private internal document — they are the basis of your tax return, your free-zone licence renewal, and your bank’s credit decision. Knowing which standard applies, and what a complete set looks like, matters more than it used to.
Which accounting standard applies to you
Under Ministerial Decision No. 114 of 2023, UAE Corporate Tax sets the accounting standards: IFRS is the default; IFRS for SMEs may be used where revenue does not exceed AED 50 million; and a cash basis of accounting is permitted where revenue does not exceed AED 3 million. Choosing the right basis early avoids restating later.
Who actually needs prepared (and audited) statements
Most businesses need a proper set of financial statements to compute taxable income for the FTA. Many free zones require audited financial statements each year for licence renewal. And banks, investors and counterparties will ask for them before they lend, invest or transact. Audited or not, statements that are prepared properly the first time save a scramble at every one of those moments.
“Your financial statements are now the basis of your tax return, your licence renewal and your bank’s decision — all at once.”
What a complete set contains
A full set under IFRS is more than a profit figure: a statement of financial position (balance sheet), a statement of profit or loss and other comprehensive income, a statement of changes in equity, a statement of cash flows, and the notes — accounting policies and the disclosures that make the numbers intelligible. Groups also need consolidation. The notes are where most preparation effort goes, and where most weak sets fall short.
- Confirm your basis — IFRS, IFRS for SMEs, or cash basis — against the revenue thresholds.
- Keep the books reconciled monthly so year-end preparation is assembly, not reconstruction.
- Check your free-zone licence for an annual audited-accounts requirement.
- Prepare the notes and disclosures, not just the primary statements.
Tax and reporting rules current as at April 2026. General guidance, not a substitute for a formal engagement — confirm your position against the latest UAE Ministry of Finance / Federal Tax Authority sources, or talk to us.