Middle East accounting newsletter

Your essential guide to disclosures for banks

Our Illustrative disclosures for banks publication helps you to prepare and present your financial statements in accordance with IFRS® Accounting Standards, illustrating one possible format for financial statements based on a fictitious banking group.

The 2025 edition reflects IFRS Accounting Standards in issue at 30 November 2025 that apply for annual periods beginning on 1 January 2025.

Fair value measurement | Updated handbook

Companies are navigating a multitude of challenges, including the rise of artificial intelligence, the transition to a greener economy, uncertainties around tariffs and international trade policies, and the implementation of new global taxes. These shifts present significant challenges to determining fair value. Therefore, it is important that a company’s financial statements tell a clear story, particularly about key assumptions, judgments and measurement uncertainties.

This edition of our Fair value measurement handbook includes our latest insight and practical guidance. It will help you apply Topic 820, Fair Value Measurement and IFRS 13 Fair Value Measurement, and understand the key differences between the two accounting standards.

IFRS® compared to US GAAP | Updated handbook

In times of uncertainty, investors, regulators and other users look for clarity in the annual report. They want to know how a company is affected and how it addresses the challenges, and what judgments, estimates and assumptions management makes. For those companies reporting under both IFRS Accounting Standards and US GAAP, our updated IFRS compared to US GAAP handbook highlights the key differences between the two frameworks based on 2025 calendar year ends. It also includes a new chapter highlighting the key differences between the forthcoming requirements of IFRS 18 Presentation and Disclosure in Financial Statements and US GAAP.

Use our guide to help you identify and understand the key differences and drive clarity in your financial reporting.

Download our updated guide and follow KPMG IFRS on LinkedIn.

Uncertainty in financial reporting | IASB finalises 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 International Accounting Standards Board has released the final version 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 and do not have an effective date or transition requirements. 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.

Be clear in times of uncertainty | Your guide to financial reporting

External events may trigger uncertainty and cause market volatility, inflationary pressures, shifting customer demands and disrupted supply chains.

In times of heightened uncertainty, investors and regulators look for clarity in your annual report. 

Our new guide and resources on our Financial reporting in uncertain times hub will help ensure clarity in your financial reporting.

Be clear on climate in impairment | Your how-to guide

Climate change is not just an environmental issue – it is also a strategic and financial one.

Your company’s response to climate-related risks and opportunities may impact your cash flows and the value of your assets. Users need relevant information to make informed decisions, including whether and how climate-related risks and opportunities have been considered in impairment testing.

Our new how-to guide with practical insight and examples, and our updated digital guide will help companies consider the impact of climate change on impairment testing under IAS 36 Impairment of Assets.

Read our article, which also provides insight on climate-related risks and opportunities and their impact on a company’s reporting.

Areas of focus for 2025 year ends | Podcast

Our latest podcast offers clear and concise points for companies to consider in preparing their year-end financial statements.

Hosted by Brian O’Donovan, this episode takes as its central theme the need to achieve clarity in financial reporting amid significant uncertainty. It delivers insight from KPMG specialists on a range of topics, including getting ready for IFRS 18 Presentation and Disclosure in Financial Statements and embracing the challenge of sustainability reporting.

Pillar Two taxes | Applying the mandatory deferred tax exception to QDMTT

Many countries are implementing the international tax reform under Pillar Two and introducing top-up taxes. These top-up taxes are subject to the mandatory exception from deferred tax accounting under IAS 12 Income Taxes.

In some countries, a domestic minimum top-up tax – intended to be ‘qualified’ under Pillar Two – is effective from 1 January 2025. However, the ‘qualifying’ status of such a tax is expected to be formally confirmed at a future date.

Our updated digital guide provides guidance on how to apply the mandatory deferred tax exception to a domestic minimum top-up tax before its qualified status is formally confirmed.

Hyperinflationary presentation currency | IAS 21 final amendments

To reduce diversity in practice and improve the usefulness of information for investors, the International Accounting Standards Board (IASB) has amended IAS 21 The Effects of Changes in Foreign Exchange Rates to clarify that:

• A company with a non-hyperinflationary functional currency uses the closing rate at the latest reporting date when translating all the financial statement amounts (including comparatives) into its presentation currency.
• A company uses the closing rate at the latest reporting date when translating all amounts (excluding comparatives) of a foreign operation with a non-hyperinflationary functional currency and applies the general price index to restate the comparatives.

The amendments apply retrospectively for annual reporting periods beginning on or after 1 January 2027. Earlier application is permitted.

Read our article to find out more.

IFRIC agenda decisions | IFRS 18 – Presentation of non-income taxes

In November, the IFRS® Interpretations Committee devoted most of its meeting to IFRS 18 Presentation and Disclosure in Financial Statements, which is effective for 2027. For many companies, the first comparative period under IFRS 18 starts in just a few weeks, so these discussions were very timely.

In our latest video, part of a series on key discussions by the Committee, Brian O’Donovan summarises one topic that generated a lot of interest – presentation of taxes that are not income taxes.

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

Crypto assets and stablecoins | Podcast

Crypto assets continue to be in the spotlight. Any company considering investing needs to understand the accounting and tax implications to make informed decisions.

This podcast examines some key considerations for companies – specifically around accounting and tax – with input from Julia LaPointe (Associate Partner, KPMG International Standards Group), Charlotte Lo (Partner, Accounting Advisory Services, Banking & Asset Management, KPMG UK) and Susanne Dixon (Partner, Tax, KPMG UK).

Risk mitigation accounting | Have your say on proposals to add to IFRS 9

Proposals to introduce a new Risk Mitigation Accounting (RMA) model in IFRS 9 Financial Instruments aim to better align the financial statements with repricing risk management activities.

The new model would be optional. However, entities would no longer be able to apply hedge accounting under IAS 39 Financial Instruments: Recognition and Measurement.

This would be a significant change for banks and insurers that manage their exposure to repricing risk that arises from financial assets and financial liabilities that change continually.

Read our article to find out more. Given the complex nature of this topic, we encourage you to: engage early, field test the proposals and have your say by 31 July 2026 on whether this model would enable you to reflect how you manage repricing risk in your financial statements.

Illustrative disclosures | Tell your strategic story

IFRS Sustainability Disclosure Standards allow flexibility in presenting material information about sustainability-related risks and opportunities. You can tailor disclosures to your circumstances and jurisdictional requirements, to tell your strategic story.

At the same time, many companies are asking what information they should include – where and in what format.

Our Illustrative disclosures can help. This collection of over 40 illustrative examples is a practical resource to guide and inspire your reporting across the core content areas of the standards. It illustrates a range of options to catalyze your thinking and demonstrate the flexibility, scalability and connectivity embedded in the standards.

Download the illustrative disclosures here.

Amendments to IFRS S2 Climate-related Disclosures

Targeted amendments to IFRS S2 Climate-related Disclosures will change how some companies disclose their emissions, particularly in the following areas.

• Scope 3 Category 15 greenhouse gas (GHG) emissions
• Global warming potential values
• Industry-classification systems
• Jurisdictional relief

The changes provide relief and clarifications to support companies in applying IFRS S2 while minimizing disruption to jurisdictions that are in the process of adopting IFRS® Sustainability Disclosure Standards.

Read our article to find out more.

GHG emissions reporting handbook

Disclosing greenhouse gas (GHG) emissions is a fundamental part of sustainability reporting for many companies.

In addition to new Q&As and examples on application of the GHG Protocol Standards, the KPMG GHG emissions reporting handbook has been enhanced with in-depth guidance on measuring and disclosing GHG emissions under IFRS® Sustainability Disclosure Standards. These updates include information about the latest amendments to IFRS S2 Climate-related Disclosures and practical implications for companies.

This handbook explains GHG emissions reporting for finance professionals who are more familiar with financial reporting and generally accepted accounting principles. As such, we explain concepts in a way that we think will be the most understandable for this audience.