Statements your auditor, bank and regulator accept
For the licence, the bank, the shareholder or the tax computation — a proper set of statements under the framework that actually applies to you, with the judgemental areas thought about rather than templated.
At some point every UAE company has to produce a formal set of financial statements — for licence renewal, for the bank, for a shareholder, for the auditor, or because Corporate Tax requires the computation to start from accounts prepared under an accepted framework. What that set looks like depends on which framework applies to you.
Which framework applies
| Framework | Typically applies to | Practical effect |
|---|---|---|
| IFRS | The default for UAE entities, and required above the prescribed revenue threshold | Full recognition, measurement and disclosure requirements |
| IFRS for SMEs | Entities below the prescribed revenue threshold that elect it | Substantially reduced disclosure and some simplified measurement |
| Cash basis | Smaller businesses within the limits set for Corporate Tax purposes | Simplest, but unsuitable once stock, credit or leases are significant |
What we prepare
A complete set — statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows, and the notes, including the accounting policies and the disclosures your framework actually requires rather than a generic set carried over from a template.
The areas that most often need real work in a UAE SME are IFRS 16 leases, end-of-service benefit provisions, inventory valuation and impairment, revenue recognition where there are agents or multiple performance obligations, and related-party disclosures — which now carry additional weight because of Corporate Tax transfer pricing requirements.
Neo Finance is an accounting firm. We prepare financial statements and the supporting file, and where an audit is required we appoint and work alongside an independent UAE-registered audit firm — we do not issue audit opinions ourselves. See audit support.
Reviewed 18 August 2026 by Ahmed Nabil Selim. UAE tax rates, thresholds and deadlines change — confirm the position for your period before relying on it.
Financial statements — frequently asked questions
In practice, effectively yes. Mainland companies are generally required to prepare accounts under the Commercial Companies Law, most free zones require financial statements for licence renewal, Corporate Tax requires a computation derived from accounts prepared under an accepted framework, and any bank facility or shareholder arrangement will require them. Whether they must also be audited depends on your licence, structure and free zone.
Where your revenue is within the prescribed threshold for Corporate Tax purposes, IFRS for SMEs is available and is usually the sensible choice for an owner-managed business — the recognition and measurement principles are broadly similar but the disclosure burden is much lighter. Certain entities, including those with public accountability or specific regulatory requirements, must apply full IFRS regardless. The choice should be made deliberately and applied consistently rather than drifted into.
For a business with clean monthly bookkeeping, a matter of days — the work is largely assembly, review of judgemental areas and drafting the notes. For a business whose books are incomplete, it is a reconstruction project first and a preparation exercise second, and can take weeks. This is the clearest financial argument for monthly closing: it converts the year-end from a project into an exercise.
Want a straight answer on your position?
Tell us about the business — licence, size, systems and where things currently stand. We will tell you what you are obliged to do and what it costs to have it handled.
Talk to an accountant →