Middle East accounting newsletter

Insights into IFRS | Be clear in times of uncertainty

In times of heightened uncertainty, investors and regulators are looking for clarity in your annual report. They want to know how your company is affected, how you address the challenges, what judgements, estimates and assumptions you make, and how you have reflected it all in the financial statements.

Insights into IFRS® is here to help. This 22nd edition contains KPMG’s most up-to-date guidance on key aspects of financial reporting. It will help you to ensure your financial statements offer a clear picture in times of uncertainty.

To learn more, read our article.

How to get your copy of Insights

Insights into IFRS® is available as an e-book on ProViewTM. Speak to your usual KPMG contact to order your copy.

You can also download a copy of Insights into IFRS: An overview, which provides a high-level briefing for audit committees and boards.

Illustrative disclosures | Your essential year-end guides

Our 2025 guides to annual financial statements. They comprise illustrative disclosures and a disclosure checklist.

These updated guides reflect IFRS® Accounting Standards in issue at 31 August 2025 that are required to be applied by a company with an annual reporting period beginning on 1 January 2025.

Find out more in our article.

Use our guides to help you prepare your annual financial statements.

Revenue handbook | 2025 edition

IFRS 15 Revenue from Contracts with Customers is being applied to an ever-expanding population of contracts, some dealing with products and services that did not even exist when the standard originally became effective. However, the standard and its five-step model continue to provide a solid and consistent base when accounting for revenue from contracts with customers.

In its review of IFRS 15, the International Accounting Standards Board (IASB) concluded that the standard is working as intended, but acknowledged that some areas can be challenging to apply in practice.

With this in mind, the updated edition of our Revenue handbook includes additional observations and examples, and extensive discussion of the areas that companies have found most complex. We hope it will help you in applying the requirements of IFRS 15 to a broad range of contracts with customers.

Uncertainty in financial reporting | New illustrative examples

Investors and regulators are demanding clarity on uncertainty in financial reporting, so companies should expect increased scrutiny.

As part of its response, the IASB is introducing a set of six new illustrative examples to help companies target areas of known investor and regulator concern. These examples illustrate the application of existing requirements in IFRS® Accounting Standards. Although they use climate-related scenarios, they aim to drive clarity on uncertainty in financial reporting more broadly.

Read our article to find out more.

IFRS 19 | Catch-up amendments

Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures reduce the disclosure requirements related to a number of recent standards and amendments.

The timing of IFRS 19’s publication (in May 2024) meant that disclosure requirements in new or amended IFRS® Accounting Standards issued between 28 February 2021 and May 2024 were included without reductions. These amendments reduce the disclosure requirements for the relevant standards issued in that period. Ongoing updates will similarly amend IFRS 19 for future standards and amendments.

Read our article to find out more.

IFRIC agenda decisions | IFRS 18 – Exchange differences on intragroup loans

At its September meeting, the IFRS® Interpretations Committee discussed how foreign exchange differences arising on intercompany loans should be classified in consolidated financial statements under IFRS 18 Presentation and Disclosure in Financial Statements. Companies will need to keep a close eye on the outcome of these discussions as they prepare financial statements using IFRS 18.

In our latest video, part of a series on key discussions by the Committee, Brian O’Donovan summarizes what was covered.

The IFRS Foundation also publishes updates of the Committee’s meetings.

IAASB announces withdrawal of ISAE 3410

The IAASB has approved the withdrawal of the ISAE 3410, Assurance Engagements on Greenhouse Gas Statements.

The decision for the withdrawal is based upon the approval and certification of ISSA 5000, General Requirements for Sustainability Engagements which includes all types of sustainability information, including greenhouse gas emissions.

The withdrawal of ISAE 3410 will take effect from the effective date of ISSA 5000.

See the link to the news article by the IAASB.

New educational material about greenhouse gas emissions in IFRS S2

The IFRS Foundation has published educational material about the requirements in IFRS S2 Climate related disclosures related to measurement and disclosure of GHG emissions. The educational material includes answers to questions about:

• The context and reasoning underlying the GHG emissions-related requirements
• The use of materials of the GHG protocol in IFRS S2 requirements
• Specific aspects of the GHG emissions-related requirements

See the link to the educational material released.

Materiality | Your practical guide

To make the right decisions, investors need the right information at the right time.

When preparing reports under IFRS® Sustainability Disclosure Standards, you need to provide sustainability-related information that is clear, structured and decision-useful.

Follow the six steps in our new guide – with how-to insight and examples – that will help you provide the sustainability-related information your investors need.

VSME: A voluntary sustainability reporting option

Smaller companies’ sustainability reporting burden may ease following a European Commission decision to recommend that companies outside the scope of the Corporate Sustainability Reporting Directive report their sustainability-related information temporarily under the VSME¹ standard.

The Commission’s recommendation affords these companies greater clarity on an alternative and simpler reporting approach than that under European Sustainability Reporting Standards.

Read our article.

_{¹ Voluntary sustainability reporting standard for non-listed small and medium-sized entities (SMEs).}