UAE Ministry Of Finance Advances Federal Accounting Standards For Enhanced Transparency

The Ministry of Finance recently hosted a pivotal training course titled "Roundtable Session - Discussion of Updates to the Federal Government's Accounting Standards Manual". This initiative underscores the ministry's dedication to refining governmental financial operations and boosting the efficiency of financial performance across federal ministries and entities. The session attracted financial department managers from various federal agencies and institutions, highlighting its significance.

Mariam Mohamed Al Amiri, the Assistant Under-Secretary of the Government Financial Management Sector at the Ministry of Finance, underscored the critical role of accounting standards. She pointed out that these standards are instrumental in achieving the federal government's objectives, catering to the needs of financial information users, and ensuring the development of transparent financial reports. Al Amiri stressed the importance of applying accounting treatments uniformly across all federal entities to facilitate the comparison of financial performance both internally and internationally across different periods. This approach also aims to provide essential guidance and advice on accounting treatments and disclosure requirements.

The course provided a platform for presenting and deliberating on significant updates to the accounting standards manual that will influence accounting and financial operations within the federal government. These updates pertain to various standards including financial instruments, social benefits, leases, non-current assets held for sale, and discontinued operations. Moreover, the session delved into challenges, preparations, and enablers necessary for federal entities, alongside introducing new governmental standards currently under development and expected to be issued shortly.

Participants were briefed on crucial updates integrated into the standards manual in both Arabic and English. These updates include aligning the numbers of FGAAS and IPSAS standards, updating reference indicators within each standard to match the new numbering system, and incorporating annual updates from the International Public Sector Accounting Standards Board (IPSASB). Additionally, attendees were introduced to new standards added to the manual and issued by IPSASB.

The training course also outlined a comprehensive roadmap for applying these standards along with related initiatives currently in progress. This includes integrating five accounting standards issued in 2023 by IPSASB into the Federal Government Accounting Policies and Procedures Manual (FGAAP), updating FGAAP, adding the Conceptual Framework for International Public Sector Accounting Standards with all updates to the government standards manual, and examining sustainability recommendations and guidelines suggested by IPSASB.

This proactive approach by the Ministry of Finance not only aims at enhancing financial reporting and performance across federal entities but also ensures adherence to international best practices in public sector accounting. By keeping abreast of global developments in accounting standards, the UAE reaffirms its commitment to transparency, efficiency, and accountability in governmental financial management.

With inputs from WAM