Until recently recently only certain entities in the United Arab Emirates (UAE) were required to report under IFRS.
But on 1 July the new UAE Commercial Companies Law (UAE Federal Law No. 2 of 2015) came into force and all companies are required to amend their existing memoranda and articles of association to reflect, and comply with, the changes introduced by the New CCL.
Any company that fails to make the requisite amendments by 30 June 2016 will be automatically dissolved.
The new CCL requires all companies with public accountability to use full IFRS as issued by the IASB. In addition, the new law permits small and medium-sized entities to use either the IFRS for SMEs or full IFRS.
Compliance to the new law is required no later than 1 July 2016.
The New CCL does permit companies to retain electronic versions of their documents (provided that such documents will be saved in compliance with a decree to be issued by the Minister of Economy).
The stated objective of the New CCL is to continue the UAE’s development into a global standard market and business environment and, in particular, raise levels of good corporate governance, protection of shareholders and promotion of social responsibility of companies.
Read more here.