The Report: Bahrain 2018: Accountancy & TaxOBGplus
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Viewpoint:Ahmed Alsulaiman The beginning of 2018 has witnessed a lot of new developments related to the introduction of VAT within the UAE and Saudi Arabia, the implementation of which began on January 1, 2018. Sheikh Ahmed Al Khalifa, the minister of finance for Bahrain, has officially announced that the country will also introduce the new tax, and has stated that the process of implementation…
In line with global practices, Bahrain is committed to adopting the new International Financial Reporting Standards (IFRS) as of January 1, 2018. Accordingly, IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers are coming into practice in the kingdom. BACKGROUND FOR IFRS 15: The US Financial Accounting Standards Board (FASB) and International Accounting Standards…
The negotiations that have been ongoing between the British government and the EU since the triggering of Article 50 in March 2017 have attracted the close attention of global decision-makers and will continue to do so until the deadline for a trade agreement expires in March 2019. On March 29, 2017 Prime Minister Theresa May submitted the Article 50 withdrawal notification to the EU. That…
Viewpoint: Ahmed Alsulaiman In 2007 the six-member GCC agreed in principle to try out a VAT on a collective basis. It is important to remember that oil was trading at above $140 per barrel in early 2008. Some nine years later, when oil was trading at around $30 per barrel, or 72% less than in 2007, the GCC states faced calls from international bodies including the IMF to broaden their revenue sources…
The two main general frameworks governing the preparation and presentation of the financial statements are the International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP). ACCOUNTING STANDARDS: IFRS are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. These…
This chapter contains an overview of the tax framework in which local and foreign investors operate in Bahrain, including a summary of accounting standards and principles in the country, an analysis of Brexit’s impacts on GCC economies and a look ahead to the possible implementation of VAT in the GCC. This chapter contains a viewpoint from Ahmed Alsulaiman, Managing Partner, KSI - Bahrain Consultants…
The UK’s decision to leave the EU caught the financial markets by surprise and drove them to a period of real uncertainty. The unexpected results led to a broad sell-off across continents and asset classes. Because the UK is the fifth-largest economy in the world, it is critical that the Brexit process be carried out in an efficient and timely manner. Brexit is a huge change in many aspects,…
Like its Gulf neighbours, Bahrain has continued to offset the effects of the drop in oil prices with a host of measures, including moves towards subsidy reduction, now in place to ease the pressure. Despite the downturn, however, the country has continued to push ahead with many big-ticket projects. Counter-cyclical spending in the energy sector is expected to stand the broader economy in good ste
Interview:Habib Jawad Habib What is the biggest discrepancy in accounting principles between the region and the West? HABIB JAWAD HABIB: This is difficult to say as there are many differences. We simply never see the scale of failure in the Arab world that seems to characterise the Anglo-American economy and the 2012 trading loss at JP Morgan is an example of this. It is further the case that…