We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 24 Mar 2010 04:16 AM

Font Size

- Aa +

Grant Thornton backs introduction of IFRS for SMEs

Firm says IFRS introduction would help unify and streamline financial reporting for small businesses.

Grant Thornton backs introduction of IFRS for SMEs
IFRS BACKED: Grant Thronton, an accounting and consulting firm, has backed the introduction of IFRS for SMEs in the UAE. (Getty Images)

Grant Thornton, a leading independently owned accounting and consulting firm, has backed the introduction of International Financial Reporting Standards (IFRS) for small and medium sized enterprises.

The firm said that the introduction of IFRS would help unify and streamline financial reporting for small businesses, while facilitating the further growth of the SME sector in the UAE.

Raza Meghji, partner, Grant Thornton UAE, said that as the sector currently accounted for more than 85 percent of all business in the UAE, it represented the primary driver of job creation and growth in the country.

Meghji highlighted the biggest challenge faced by small and medium enterprises, the access to finance, which was exacerbated by the global financial crisis.

He added: “By adopting IFRS for SMEs, small businesses in the UAE will be able to provide potential lenders and investors with credible, standardised and transparent financial records, facilitating the extension of credit and benefiting the long term diversification and stability of the domestic economy.”

Since 2007, Abu Dhabi’s Sheikh Khalifa Fund for Support and Development of Small and Medium Enterprises has helped finance 205 projects worth approximately $92.5 million. In January, it approved an additional $30.2 million in funds for 67 new small to medium sized enterprises.

Meghji added that with the announcement of the SME Development Roadmap by the Mohammed Bin Rashid Establishment for SME Development in December 2009 and the definition for SMEs now in place, the new IFRS for SMEs provide clear benefits for investors, lenders and those seeking to raise finance.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.