UAE

Accounting Standards and Practices

The article Accounting Standards and Practices of Financial Institutions for GCC countries ' is chosen for examination , because it deals with current policies of financial institutions in GCC countries especially in the United Arab Emirates . The article is worth attention because it thoroughly examines the ties existing among GCC countries Furthermore , the article evaluates the increased need for harmonization of accounting regulations with the purpose of cooperation improvement Actually , the article investigates accounting standard in five GCC countries and thus it enlarges knowledge of their policy and current

br regulations . Moreover , the article sheds light on the most important aspect of financial stability of any country : loans , assets investments , foreign exchange , liabilities and revenue re-organization

It is necessary to admit that article contains new materials , because the question of accounting standards is still under discussion and the articles allows having a new look on them . For example , article provides the banking system of UAE consisting of 27 foreign commercial banks , 18 local commercial banks and 36 representative offices . The Central Bank of the UAE supervises the bank system and regulates the activities of licensed brokers

Apparently , the article refers to the chapter International Accounting and Taxation . For example , it is mentioned that international accounting standards are prescribed for all banks operating in the country from 1999 onwards . Earlier the banks had to follow circulars 466 and 445 of 1987 prescribed by Central Bank . Since 1998 UAE banks have gained more freedom . It means that the largest banks have the lowers level of disclosure in financial statements . UAE 's largest banks are National Bank of Dubai and Mashreq Bank . The first bank to publish its accounts to IAS was EBI . The smaller banks are obliged thus to provide a number of IAS30-type disclosures . It is necessary to outline that UAE 's banks are encouraged to provide more detailed information about their activities

References

Hussain , M , Islam , M , Gunasekaran , A Maskooki , K (2002 , November 7 . Accounting Standards and Practices of Financial Institutions for GCC countries . Managerial Auditing Journal , 17 , 350-362

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