Financial Statements Compilation Service in the UAE

A financial statements compilation service involves a licensed accountant assembling a business’s financial data into a complete set of financial statements — including the statement of financial position (balance sheet), statement of profit or loss, statement of cash flows, and statement of changes in equity — without providing audit assurance or a review conclusion. It is governed by International Standard on Related Services (ISRS) 4410 – Compilation Engagements. At Abdelhamid & Co. Certified Public Accountants & Auditors L L C SP, we are licensed by the UAE Ministry of Economy (Local Auditors Record No. LC0106-01). We prepare IFRS-compliant financial statements for UAE businesses across all industries and entity sizes, delivered with an ISRS 4410 compilation report.

This service is part of our broader accounting services. Learn more about our firm and our team.

Legal and Professional Framework

Financial statement compilation in the UAE is governed by:

• International Standard on Related Services (ISRS) 4410 – Compilation Engagements — the applicable international standard for compilation engagements, issued by the International Auditing and Assurance Standards Board (IAASB)
• International Financial Reporting Standards (IFRS) — the mandatory financial reporting framework for all UAE entities under Federal Decree-Law No. 32 of 2021 on Commercial Companies
• IFRS for SMEs — applicable to smaller entities not required to apply full IFRS
• Federal Decree-Law No. 32 of 2021 on Commercial Companies — requiring UAE companies to maintain proper accounting books and prepare annual financial statements
• Federal Decree-Law No. 47 of 2022 on Corporate Tax — requiring taxable persons to maintain adequate financial records supporting their tax returns

Compilation vs Audit vs Review — What is the Difference?

Understanding the level of assurance provided by each type of engagement is important:

• Compilation (ISRS 4410): The accountant assembles financial statements from information provided by management. No assurance is expressed. The compilation report states that no audit or review procedures were performed.
• Review (ISRS 2400): The accountant performs limited analytical and inquiry procedures and expresses a conclusion of “not aware of any material misstatements” — providing limited assurance.
• Audit (ISA): The auditor performs full audit procedures and expresses an opinion on whether the financial statements present a true and fair view — providing reasonable assurance.

A compilation is appropriate where the primary purpose is to provide well-presented, IFRS-compliant financial statements for management, tax, or internal purposes, and statutory audit is not required. For entities required to have audited financial statements, our external audit service is available.

What the Compiled Financial Statements Include

A complete set of IFRS-compliant compiled financial statements includes:

• Statement of Financial Position (Balance Sheet) — assets, liabilities, and equity at the reporting date
• Statement of Profit or Loss and Other Comprehensive Income — revenue, expenses, and net profit or loss for the period
• Statement of Changes in Equity — movements in share capital, retained earnings, and reserves
• Statement of Cash Flows — operating, investing, and financing cash flows
• Notes to the Financial Statements — accounting policies, significant estimates, and disclosures required by IFRS
• ISRS 4410 Compilation Report — the accountant’s report confirming the basis of preparation and the nature of the engagement

Our Financial Statements Compilation Services

1. Client Data Collection & Review

We collect the client’s trial balance, general ledger, bank statements, supporting schedules, and relevant contracts. We review the data for completeness and internal consistency, and query any items requiring clarification from management before proceeding.

2. IFRS Classification & Accounting Policy Application

We classify and present all balances and transactions in accordance with the applicable IFRS standards — including IFRS 9 (financial instruments), IFRS 15 (revenue recognition), IFRS 16 (leases), IAS 2 (inventories), IAS 16 (property, plant & equipment), and IAS 37 (provisions). We apply and document the entity’s accounting policies consistently.

3. Financial Statements Preparation

We prepare the full set of financial statements — all four primary statements plus the notes — in a professional format suitable for presentation to banks, investors, regulators, or tax authorities. Statements are prepared in English and/or Arabic as required.

4. ISRS 4410 Compilation Report

We issue the accountant’s compilation report in accordance with ISRS 4410, clearly identifying the financial statements compiled, the applicable financial reporting framework (IFRS or IFRS for SMEs), and the nature and limitations of the compilation engagement.

Why Choose Abdelhamid & Co for Financial Statements Compilation?

• Licensed by the UAE Ministry of Economy — Local Auditors Record No. LC0106-01
• Partner credentials: UAECA, IACPA, EAAA Fellow (124), IASCA Fellow (1361), MOE Reg 956
• Full IFRS and IFRS for SMEs compliance — including IFRS 9, 15, 16, IAS 2, 16, 37
• ISRS 4410-compliant compilation report issued with every engagement
• Outputs accepted by UAE banks, investors, the FTA, and regulatory authorities
• Bilingual financial statements — English and Arabic available
• Serves all entity types: LLCs, sole establishments, branches, free zone companies, and partnerships
• Transparent, fixed-fee engagements

Frequently Asked Questions — Financial Statements Compilation UAE

What is ISRS 4410 and why does it matter?

ISRS 4410 is the international standard governing compilation engagements. It requires the accountant to use professional judgment in preparing and presenting the financial statements and to issue a compilation report that clearly discloses the nature of the engagement and the absence of audit or review assurance. Compliance with ISRS 4410 ensures the compilation meets recognised international standards.

Do I need audited financial statements or compiled ones?

UAE law requires certain entities — public joint stock companies and some LLC structures — to have audited financial statements. For entities not subject to statutory audit, compiled financial statements prepared under ISRS 4410 are appropriate for internal management, tax compliance, bank submissions, and investor reporting. If audit is required, our external audit service covers this.

Are the financial statements prepared in accordance with IFRS?

Yes. All compiled financial statements are prepared in accordance with full IFRS or IFRS for SMEs as applicable to the entity, which is the mandatory financial reporting framework in the UAE under Federal Decree-Law No. 32 of 2021 on Commercial Companies.

Can compiled financial statements be used for Corporate Tax purposes?

Yes. Under the UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022), taxable persons are required to maintain financial records. Compiled IFRS-compliant financial statements serve as appropriate financial records supporting the preparation of Corporate Tax returns. We can provide both the compilation and Corporate Tax services as a bundled engagement.

How long does financial statement compilation take?

For most SMEs with complete records, the compilation is typically completed within 5–10 business days of receiving all required data. Turnaround depends on the completeness and quality of the client’s records. We advise on the required data at the engagement planning stage.

Can financial statements be prepared for multiple periods?

Yes. We can compile financial statements for any historical period, including catch-up compilations for businesses that have not maintained formal financial statements for prior years. This is particularly common for new UAE entities or businesses preparing for a bank loan, investor due diligence, or regulatory requirement.

Contact Us for Financial Statements Compilation in the UAE

📞 Phone / WhatsApp: +971 50 794 8028
📞 Direct: +971 065 289 414
🌐 Office: Sharjah, Al Qasimia, Omran Tower, Office 302

Abdelhamid & Co. Certified Public Accountants & Auditors L L C SP — Licensed by the UAE Ministry of Economy (LC0106-01)

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