COVID-19 Accounting & Financial Implications
SEP 22, 2020
The Regulators and the Accounting & Auditing Profession practitioners in the UAE
layout solutions for the financial and accounting challenges posed by COVID-19
Under the sponsorship of the UAE Ministry of Economy and the Securities & Commodities Authority (SCA), the UAE Accountants & Auditors Association established task-team of experts and practitioners to study the economic and financial impact of the Corona Virus Disease (COVID-19) pandemic, as the international financial and accounting standards do not contain specific provisions or rules to address this unprecedented scenario, which will result in each entity, accountant and auditor applying their own interpretation of international standards in these exceptional circumstances.
Hence, this initiative is important in creating and developing the most appropriate and best practices to address these challenges in the UAE and standardize the interpretation of financial and accounting standards in order to achieve economic stability and reflect the reality of the financial position of each entity.
The Association started working on the initiative in April 2020 by establishing task-team headed by H.E Riyad Al Mubarak, the Honorary President of the Association, the Founder and Managing Partner of RAI firm. The task-team includes experts from the UAE Ministry of Economy, the Securities & Commodities Authority (SCA), Central Bank of the UAE, and practitioners from the big accounting and auditing firms in the UAE, where the team prepared a detailed guide “Covid-19 Financial and Accounting Implications” to address the financial and accounting challenges posed by COVID-19.
The guide covers a number of financial and accounting matters for the main activities and businesses affected by COVID-19 and methods of dealing with them in line with the International financial and accounting standards adopted in the UAE where investors, boards of directors, departments, lenders and other stakeholders need high-quality financial information and reports now more than ever.
In addition, this guide illustrates additional key accounting considerations for a number of vital business economic sectors that have significant contribution to the UAE’s GDP including Energy Industry (Oil & Gas and Utilities), Banks and Financial Services Industry, Insurance Industry, Retail Industry, Construction Industry, Real Estate Industry and Manufacturing Industry.
It is worth noting that the Association has published the guide (in English and Arabic languages) on its website www.uaeaaa.ae on the “Covid-19 Platform”, as this platform was established to issue regular updates, guidelines and technical working papers related to addressing the challenges and implications of the current crisis of COVID-19 on accounting and financial reporting.
On this occasion, H.E. Riyad Al Mubarak said “I would like to take this opportunity to thank UAE’s Leadership for their wise ongoing efforts to combat this pandemic and to thank our Nation’s first line of defense, the healthcare practitioners, for putting society’s safety before their own and for their service and sacrifice”.
Al Mubarak also stressed the need for the community of accounting and auditing profession in the UAE to contribute by providing the necessary support and expertise to the business community in the UAE and the relevant stakeholders to help in such times of unclear and unprecedented uncertainty.
He added, “I would also like to thank all of those who have contributed to this guide including the accounting and auditing practitioners and firms in the UAE, praying to the Great and Almighty Allah to grant us success in serving our generous country”.