Accountancy Profession in the United Arab Emirates (UAE)
Part 1
United Arab Emirates has no full membership in the International Federation of Accountancy (IFAC). However, the Kingdom of Saudi Arabia (KSA) is a full member through the Saudi Organization for Certified Public Accountants (SOCPA). Statements have approved the organization of Membership Obligations (SMO) that forms the basis of the IFAC Member Compliance Program (IFAC, n.d.). SMO ensures that accountancy organizations are credible by adopting, incorporating and enforcing international standards so that individual members can behave professionally. Other gulf countries that have IFAC members are Bahrain through Bahrain Accountants Association, Iraq, through Association of Public Accountants and Auditors and Kuwait through Kuwait Association of Accountants and Auditors (IFAC, 2019). Other gulf countries like Oman, Qatar and UAE are not IFAC members.
Part 2
UAE Accountants and Auditors Association (AAA) does not represent the UAE in the IFAC as one of the professional accountancy organization (PAOs). The organization has not registered as a full member representative for UAE (IFAC, 2019).
Part 3
The IFRS Foundation is a not-for-profit organization whose purpose is to serve public interests by nurturing trust, growth and long-term financial stability in the global economy. The organization was established to develop a single set of high-quality global accounting standards called IFRS Standards. The objective of IFRS is to ensure that financial markets around the world have transparency, accountability and efficiency (IFRS, 2019). The International Accounting Standards Committee (IASC) is not involved in setting standards for IFRS.
Part 4
UAE indeed has a profile in IFRS foundation, which is completed in 166 jurisdictions and not a membership (IFRS, 2019). IFRS jurisdiction profile enables the foundation to assess progress towards the goal of global accounting standards.
Part 5
UAE Accountants and Auditors Association (AAA) that mostly proposes the accounting and auditing standards in the country. It suggests new regulatory standards for the profession. AAA deploys high standards for ethical and professional conduct. The country has no national accounting standards but the ministry has a mission to achieve 100 professionally qualified UAE Nationals by the year 2021 (AAA, n.d.).
Part 6
Most jurisdictions require both domestic and foreign companies so that they comply with IFRS and UAE is one of them. IFRS required for listed companies for the purpose of standalone and separate financial statements. All companies are required by the UAE commercial law to apply international accounting standards and practices when preparing their accounts (IFRS 2019). Therefore, there is need to apply IFRS when preparing financial statements.
Part 7
The rules for statutory filings have described IFRS and IFRS SMEs requirements by the UAE Commercial Companies Law No.2 of 2015 that necessitates the application of IFRS whenever financial statements are being prepared (IFRS, 2017). Besides, there are listing rules of NASDAQ Dubai, Dubai Financial Services Authority, Dubai Financial Market PJSC and the Abu Dhabi Securities Exchange.
Part 8
One has to be an ACCA member and a National/Resident of the United Emirates (UAE) to become a member of the UAE Accountants and Auditors Association. A resident of the UAE is someone that lives in one of the seven Emirates with a valid residency visa.
Part 9
According to IFRS (2019), the International Accounting Standards Board (IASB) removed information from the preface, and the IFRS Foundation now covers it. However, the preface is issued to explain the scope, authority and the timing of application of IFRS Standards.
Part 10
UAECA is a national body of accountants that is recognized both nationally and internationally. Association of Auditors (AAA) and the Association of Chartered Certified Accountant (ACCA), the global body for professional accountants have signed an agreement to offer qualification to UAE Chartered Accountant ( UAECA) so that financial sector in UAE can be enhanced.
References
AAA. Accountants and Auditors Association. Retrieved 11 April 2020, from https://aaa4uae.ae/
IFAC. (2019). Saudi Organization for Certified Public Accountants. Retrieved 11 April 2020, from https://www.ifac.org/about-ifac/membership/members/saudi-organization-certified-public-accountants
IFAC. Membership. Retrieved 11 April 2020, from http://www.ifac.org/who-we-are/membership
IFRS. (2019). Preface to International Financial Reporting Standards. Retrieved 11 April 2020, from https://www.iasplus.com/en/standards/other/preface
IFRS. (2017). Retrieved 11 April 2020, from https://www.ifrs.org/-/media/feature/around-the-world/jurisdiction-profiles/united-arab-emirates-ifrs-profile.pdf/