ADE Professional Solutions

Cryptocurrencies continue to generate a significant amount of interest from both private investors and large corporations due to their rapid increase in value and expanded institutional adoption. As activity in cryptographic assets increases, it has attracted regulatory scrutiny across multiple jurisdictions. And the appearance of such assets in company’s financial statements requires financial services to carefully analyze, develop accounting methods and present them in reporting. In this article, we discuss special aspects of accounting for cryptocurrencies, such as Bitcoin, in reporting under IFRS and US GAAP. To understand the specifics of cryptocurrencies in relation to accounting, it is useful to know a few basic definitions, which we provide below.

When preparing financial statements under IFRS, at the initial recognition as well as during subsequent measurement of assets and liabilities, and disclosure of events and transactions, it is often necessary to interpret the probability terms used in IFRS standards. The rages of thresholds of different probabilities (unlikely, probable, highly probable) in quantitative terms are not clearly stated in IFRS and as a result bring a lot of headache for the accountants and other users of the financial statements. In this article, we will discuss the theory and practice of interpreting the probability term in IFRS, and also compare it with US GAAP.

In this article, we explore the importance of transfer pricing documentation under the UAE's Corporate Tax Law, focusing on the limitations of documentation, the requirements outlined in the law, and the significance of an audit trail. We also provide tips for preparing an effective audit trail and highlight common errors to avoid in transfer pricing documentation. #transferpricing #corporatetax #uaecorporatetax #taxlaw #financeeducation #financeforward

In this article, we explore the challenges and methods of applying transfer pricing (TP) under the Federal Tax Authority (FTA) guidelines in the UAE. The FTA's Transfer Pricing Guide (TP Guide) outlines five internationally accepted TP methods that ensure that transactions between related parties comply with the arm's length principle, valuing them as if they were between unrelated parties. The article covers: 1) Introduction to TP rules and methods specified by the FTA TP Guide and OECD TP Guidelines. 2) Detailed explanation of the five TP methods. 3) Application considerations for each method, including factors affecting reliability and suitability. 4) Comparison of traditional transaction methods with transactional profit methods. 4) Specific challenges and considerations for applying the PS method. #transferpricing #corporatetax #uaetax #financeeducation #financeforward

In this article, we discuss the Group Transfer Pricing Policy as a tool for managing transfer pricing risks in businesses, focusing on compliance with past events and planning for future transactions. A few Points Covered are: - The limitations of TP documentation in confirming past events and the need for structured planning. - The organizational process, starting with compliance and moving towards planning and controlling. - The challenges in mitigating identified risks in closed reporting periods or documented transactions. - The significance of a clear functional profile, the selection of TP methods, and comparability criteria in TP transactions. - The development of TP from basic documentation to a complex business process that helps manage TP risks and improve overall control efficiency. #CorporateTax #TransferPricing #RiskManagement #FinanceEducation #FinanceForward

In this next series of articles, we explore the requirements and steps for preparing transfer pricing (TP) documentation under the UAE Corporate Tax Law, which became effective in June 2023. This article (part 1/2) covers steps to prepare for TP documentation by: 1. Understanding Related and Connected Parties 2. Collecting Transaction Data 3. Prioritizing Analysis Based on Materiality 4. Integrating Various Company Functions #transferpricing #corporatetax #uaecorporatetax #ifrs #financeeducation #financeforward

In our final article on ICFR implementation, we delve into the efficiency of control system testing and its critical components. We explore the goals, methods, and criteria for testing controls with a strong emphasis on the significance of thorough documentation throughout the process. #ICFR #ControlTesting #EfficiencyAnalysis #ICFRImplementation #FinanceEducation #FinanceForward

In this article, we explore one of the crucial processes of ICFR implementation, risk identification and assessment. Discover how formalized business processes, risk criteria, and control procedures can safeguard against financial reporting errors and external threats. We look at evaluating the risks based on materiality (monetary terms) and probability (ranging from "Highly Likely" to "Impossible"), various non-monetary risk factors, and the different risk control procedures. Stay tuned for insights on evaluating control system effectiveness in our next article. #ICFR #ICFRImplementation #RiskAssessment #InternalControls #FinanceEducation #FinanceForward

In the dynamic business management landscape, one often overlooked but critical aspect is the formalization of processes. In this article, we embark on a journey to uncover the immense value that lies in the meticulous structuring of business operations. By exploring real-world scenarios and practical solutions, we shed light on the significance of process standardization. Join us as we delve into the realm of efficient business operations and risk mitigation strategies, and discover how formalizing processes can pave the way for sustainable growth and stability. #BusinessProcesses #RiskManagement #ProcessOptimization #InternalControls #FinanceEducation #FinanceForward