1. PART FOUR – COMMERCIAL LEGISLATION in the UAE Audit, Accountancy and Taxation Ch 19

2. 1-2 Audit, Accountancy & Taxation Accounting system: Accounting system: Organized set of manual and computerized accounting methods, procedures, and controls established to gather, record, classify, analyze, summarize, interpret, and present accurate and timely financial data for management decisions. An accounting system is important because it allows for financial management and wise distribution of funds. Accounting can help to keep track of a budget, managing every important aspect and recording transactions. Stakeholders benefits from accounting systems such as Investors, creditors, clients, employees, government agencies….

3. 1-3 Audit, Accountancy & Taxation History of the development an Accounting system History of the development an Accounting system Countries such as the U.S have developed reliable accounting system. Generally Accepted Accounting Principles initiated the International Financial Reporting Standards (IFRS). Now, the International Accounting Standards Board (IASB)sets IFRS around the world. 1.American Institute of Certified Public Accountants (AICPA). 2.Financial Accounting Standards Board (FASB) 3.Governmental Accounting Standards Board (GASB) 4.United States Securities and Exchange Commission (SEC) 5.Others: 5.Others: American Accounting Association, Institute of Management Accountants, Financial Executives Institute.

4. 1-4 Audit, Accountancy & Taxation : Toward International Standards : Economic globalization has created a need for international accounting standards. International Accounting Standards Board (IASB)sets The International Financial Reporting Standards Foundation (IFRSF) across the globe with members of more than 100 countries in the World. International standards have no governing authority to enforce them. The board members are from different member countries.

5. 1-5 Audit, Accountancy & Taxation IASB Members : IASB Members : 1.Hans Hoogervorst (Chairman), Netherlands 2.Ian Mackintosh (Vice-chairman), New Zealand 3.Stephen Cooper, UK, 4.Phillipe Danjou, France 5.Jan Engström, Sweden 6.Patrick Finnegan, USA 7.Amaro Luiz de Oliveira Gomes(Brazil) 8.Prabhakar Kalavacherla, USA 9.Dr Elke König (Germany) 10.Patricia McConnell, USA 11.Takatsugu Ochi, (Japan) 12.Paul Pacter (US A) 13.Seo Chungwoo, (Korea Republic) 14.Darrel Scott, (South Africa) 15.John T. Smith, USA 16.Zhang Wei-Guo, China

6. 1-6 Audit, Accountancy & Taxation Benefits of IASB 1- Ethics 2- Investors benefits 3- Multinational Companies 4- International Trade

7. 1-7 Audit, Accountancy & Taxation 1- Ethics: 1- Ethics: International accounting standards set a unified code of accounting ethics to be followed across cultures. 2- Investors benefits: 3- Multinational Companies: 2- Investors benefits: Investors can compare the financial statements of companies following International Accounting Standards Board standards, regardless of the company's country of origin 3- Multinational Companies: multinationals can institute international standards across all geographical units to avoid confusion and increase the system's accuracy and efficiency. 4- International Trade: 4- International Trade: Companies increasingly seek strategic partners, customers or suppliers in foreign countries. IAS gives companies a common financial language and understanding, making it easier for them to do business together

8. 1-8 Audit, Accountancy & Taxation in the UAE Chartered Accountants (CAs) in the UAE broadly follow the International Financial Reporting Standards (IFRS) principle. UAE requires its banks to abide by IFRS, as well as companies listed on the UAE’s new stock exchange, the Dubai International Foreign Exchange (DIFX), both vital requirements if the UAE is to attract global capital.

9. 1-9 Audit, Accountancy & Taxation in the UAE The establishment of the Dubai International Financial Center required the adoption of IFRS in order to project an image of “integrity, efficiency and transparency. Consistent with World Bank requirements of developing nations. International accounting firms have both driven the adoption of IFRS in the UAE

10. 1-10 Audit, Accountancy & Taxation in the UAE Challenges of adopting the IFRS in the UAE -Culture -Regulatory infrastructure