Financial Planning And International Organizations

IFRS IN UAE1
IFRS IN UAE
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IFRS IN UAE2
Topic: The Benefits and Challenges of IFRS Adoption in UAE
Introduction
The financial planning and reporting forms a relevant aspect of the international
organizations. The main purpose of the IASB (International Accounting Standards Board) is to
ensure that the financial reporting which takes place is translucent, consistent and reasonable as
well. The body carries this out by separating the differences and disparities which exist between
the various accounting policies as well as the principles. Hence, to succumb to this, the IASB
came up with the IFRS which refer to the set of standards designed to bring parity in the
financial reporting technique between separate countries. Evans and Ocansey (2014), stated that
the IFRS (International Financial Reporting Standards) can be mentioned to be a manifestation
of globalization whereby it becomes easier for the firms to adopt the IFRS reporting standard
which makes all statements comparable (Forsberg & Ojala, 2014). At present the IFRS is
applicable over 115 countries around the globe. The main aim of the report is to highlight and
discuss the benefits and challenges of the adoption of the IFRS in the UAE.
Research and Literature review
Benefits of IFRS adoption in UAE
The adoption of the IFRS can be understood to have various benefits such as the easy
access to various external capitals for the local companies, the foreign direct investment, and
reduction in cost, easy comparisons and associated benefits (Whittington, 2008). According to
Boolaky et al., (2018), for the UAE companies, this would also lead to a reduced regulatory gaps
and enhance the overall superiority as well as the integrity of the pecuniary statements of the
business entities as present around the world. Moreover, the adoption of the IFRS is also bound
to make the reporting very convenient for the enterprise. This can be stated for the different
companies in China as a country have been able to find considerate success with the
implementation of the same (Dunne et al., 2008). In consideration of this, it can be stated that,
the companies in the UAE will successfully be able to counterpart and perform well along with
their global counterparts and this initiative would provide them with an adequate competitive
advantage.