In the UAE, all entities must adhere to either IFRS or IFRS for SMEs for their accounting and financial reporting, as mandated by Ministerial Decision No. 114 and the Corporate Tax Guide CTGACS1. IFRS for SMEs offers a more streamlined framework, especially beneficial for smaller enterprises.

Here are some key advantages:

1.Simplified Recognition and Measurement

IFRS for SMEs simplifies the principles for recognizing and measuring assets, liabilities, income, and expenses. This makes it more accessible and easier for smaller businesses to comply with accounting standards without the complexity of full IFRS.

2.Reduced Disclosure Requirements

Compared to Full IFRS, IFRS for SMEs significantly reduces the volume of required disclosures, easing the reporting burden for small and medium-sized enterprises.

3.Streamlined Accounting Policy Choices

While Full IFRS offers multiple accounting policy options, IFRS for SMEs limits these choices to more straightforward alternatives, reducing the complexity of decision-making for businesses.

4.Clear and Accessible Language

Written in simple, translatable language, IFRS for SMEs ensures that the standards are easy to understand and implement across diverse business environments worldwide.