Reporting
IFRS or IFRS for SMEs: Which Basis Applies
For UAE Corporate Tax purposes, IFRS is the accepted basis for preparing financial statements, and IFRS for SMEs may be applied where the applicable revenue condition is met.
The distinction matters because IFRS for SMEs carries reduced recognition, measurement and disclosure requirements. For a smaller business, applying it can meaningfully reduce the reporting burden without affecting compliance.
The decision should be confirmed before the reporting period rather than at year end, since the basis affects how transactions are recorded throughout the period, not only how the statements are presented.
Where a business is approaching the revenue condition, it is worth reviewing the position early — moving basis mid-stream is more disruptive than planning for it in advance.
SR Accounting Advisory Team
This article is general information based on UAE legislation and published FTA guidance at the time of writing. It is not advice for a specific business — please get in touch to discuss how the rules apply to your circumstances.
