Accounting & Financial Reporting

Financial Analysis Report

Zion UAE has been providing expert Financial Accounting and Reporting services in Dubai and across the UAE for several years. Financial accounting involves preparing financial statements that reflect the monetary transactions of a business. It aims to present the company’s financial performance and position to investors, creditors, suppliers, government agencies, and clients.

Using standardized methodologies, Zion UAE records, summarizes, and presents transactions in comprehensive Financial Reports or Statements, providing critical insights and projections for management.

The UAE Commercial Companies Law No. 2 of 2015, effective from 1 July 2015, mandates that companies apply international accounting standards when preparing their accounts. IFRS compliance is also required under NASDAQ Dubai listing regulations.

Zion UAE Accounting and Financial Reporting

The purpose of accounting and financial reporting is to offer a clear and fair view of a company’s financial health. Zion UAE follows these key steps for accurate Accounting and Financial Reporting:

1. Double Entry System

We implement the double-entry system, where every transaction affects at least two accounts—ensuring that total debits always equal total credits. This forms the backbone of accurate financial reporting.

Rule: Debit the account when an asset increases; credit the account when a liability increases.

2. Ledger Entry

Each ledger entry includes:

• The correct date
• The totals to be debited and credited
• The account associated with the transaction
• A unique reference number (URN)

We ensure that all ledger entries are accurately maintained and properly closed based on management’s reporting requirements.

3. Trial Balance

After preparing the ledger, we compile a Trial Balance listing all general ledger accounts with their respective debit or credit balances to ensure the books are balanced.

4. Financial Statements

Based on verified data, Zion UAE prepares the final Financial Statements. We also offer Finalization of Financial Statement Services to help clients validate their records for strategic planning.

Core Financial Statements include:

• Income Statement
• Balance Sheet
• Shareholders’ Equity Statement
• Cash Flow Statement

Additional MIS reports that aid decision-making include:

• Comparative Income Statement
• Customer and Supplier Ageing Reports
• Profitability Analysis Report
• Auditing Schedule Preparation

a. Income Statement

Calculates net income by analyzing all revenue and expense transactions, including non-cash items.

b. Balance Sheet

Reflects the financial position using the equation: Assets = Liabilities + Shareholders’ Equity.

c. Shareholders’ Equity Statement

Especially relevant for LLCs, this shows transaction-wise details of equity partners.

d. Cash Flow Statement

Summarizes cash inflows and outflows, categorized into:

• Operating Activities
• Financing Activities
• Investing Activities

This helps assess liquidity and guides credit and investment strategies.

All reports are prepared on an accrual basis and comply with IFRS auditing standards.

IFRS Standards and Interpretations (2019 Update)

IFRS (International Financial Reporting Standards) are developed by the IASB and are adopted in over 160 countries. These standards guide profit-oriented entities on uniform financial reporting.

• IFRS 9 – Financial Instruments
• IFRS 10 – Consolidated Financial Statements
• IFRS 15 – Revenue from Contracts with Customers
• IFRS 16 – Leases
• IAS 16 – Property, Plant & Equipment

Types of Financial Statement Users

Financial statements are essential to various external users, including:

• Shareholders or Investors
• Lenders or Creditors
• Potential Customers
• Suppliers
• Regulators / UAE Tax Authority

Accurate financial accounting promotes transparency and supports informed decision-making and regulatory compliance.

Why Zion UAE Accounting & Bookkeeping Services?

Zion UAE offers comprehensive accounting services tailored to international business needs. We ensure all financial reports comply with IFRS standards and are prepared with the highest degree of accuracy and professionalism.

Our offerings include CFO services, Outsourced Accounting, Organizational Restructuring, VAT Consultancy, Accounting Software Implementation, and Due Diligence Services.

Need assistance with accounting and financial reporting? Feel free to contact us — our experts are ready to help!