Mof Hosts High-Level Roundtable To Advance Federal Accounting And Financial Practice

(MENAFN- Mid-East Info)

• Enhancing the UAE's federal accounting and financial frameworks in line with leading international standards.
• Analysing challenges, identifying enablers, and addressing implementation considerations to ensure smooth adoption of the updated manuals.

The Ministry of Finance (MoF) organised a roundtable session to discuss the latest updates regarding the Federal Government's Accounting Standards Manual and the Federal Government Financial Policies and Procedures Manual, as part of its ongoing efforts to develop accounting and financial practice across the federal government and align with the latest international standards.

The session brought together H.E. Mariam Mohammed Al Amiri, Assistant Undersecretary for the Government Financial Management Sector at the Ministry of Finance, Amna Hassan AlShamsi, Director of Financial Policies and Government Accounting Standards at the Ministry, along with finance directors, heads of financial departments from all federal entities, and leading experts, accountants, and financial controllers.

The session aimed to analyse challenges and review the key enablers and implementation considerations that federal entities must address to ensure the effective application of the updated manuals, thereby enhancing financial performance and supporting financial governance requirements.

Building a Robust and Flexible Financial System:

H.E. Mariam Mohammed Al Amiri, Assistant Undersecretary for the Government Financial Management Sector at the Ministry of Finance, stressed that the recent updates to the Accounting Standards Manual and the Financial Policies and Procedures Manual reflect the Ministry's commitment to building a solid and flexible financial system based on the highest standards of transparency and governance, keeping pace with global developments in public sector accounting.

Al Amiri said these updates represent a qualitative shift in enabling federal entities to develop their financial practices, enhance the accuracy and efficiency of reporting, and support the UAE's efforts towards sustainable financial management capable of responding to changes in the global economic landscape.

H.E added that the Ministry of Finance is moving steadily forward in its financial development journey by adopting the latest international standards and conducting analytical studies on their impact on government work. The coming phase will see greater integration among federal entities in implementing these manuals, consolidating the UAE's position as a leading model in modern public financial management.

Main Updates to the Financial Policies and Procedures Manual:

The session presented a comprehensive overview of the main updates to the unified Federal Government Financial Policies and Procedures Manual, reflecting a strategic direction towards enhancing the efficiency of public financial management and achieving greater integration across government financial processes. These updates included merging the financial policies and procedures previously contained in various government manuals into one unified manual to standardise concepts and facilitate implementation across all federal entities.

A RACI matrix was also incorporated to clarify the functional roles and responsibilities of each entity in different procedures, enhancing institutional governance while taking into account organisational differences or administrative titles among entities, and maintaining a unified framework for accountability and compliance. In addition, the manual's structure was fully redesigned to provide a detailed description of each step in the procedures and link them to the organisational structure, which enhances flexibility in application and raises institutional efficiency in implementation.

Adding New International Standards to the Accounting Standards Manual:

The roundtable also covered the major amendments to the Federal Government's Accounting Standards Manual. These included adding the conceptual framework as a standalone component, adopting new international standards IPSAS 45 through IPSAS 49, incorporating the annual amendments issued by the International Public Sector Accounting Standards Board (IPSASB), and a full redesign of the manual in both Arabic and English.

Each new standard covers a core aspect of government financial work.

IPSAS 45 on property, plant and equipment sets accounting provisions to improve the accuracy of recording tangible assets and ensure fair valuation.

IPSAS 46 on measurement defines the bases and accounting standards for measuring assets, liabilities, revenue and expenses to enhance consistency and accuracy in financial reporting.

IPSAS 47 on revenue provides the accounting framework for recognising government revenues from different funding sources to ensure transparency in financial transactions.

IPSAS 48 on transfer expenses offers a clear framework for accounting for transfer expenses between government entities, improving reporting accuracy and expenditure balance.

IPSAS 49 on retirement benefit plans establishes a unified accounting framework for future obligations related to employee retirement, enhancing the accuracy of financial data relating to human resources.

Towards More Accurate and Transparent Financial Reporting:

The presentation and discussion of the new accounting standards formed a key milestone in developing federal accounting practice. They have enabled government entities to keep pace with global developments and enhanced their capacity to prepare accurate and transparent financial reports.

Based on the Ministry's impact study, the session reviewed the effects of applying the new standards (IPSAS 45–49) on different operational and accounting aspects, including the recording of heritage assets and infrastructure, the measurement of non-exchange assets, the reclassification of government revenues and analysis of transfer expenses.

The study highlighted the importance of preparing government entities by developing internal policies and updating financial databases to enhance transparency, improve report quality and ensure compliance with international standards, reflecting the Ministry's commitment to keeping pace with global advances in public sector accounting. In this context, the Ministry's Financial Policies and Government Accounting Standards Department continues its efforts to draft and develop federal financial policies and unify accounting practices to build a more effective and sustainable financial system.

Future Steps to Strengthen Sustainable Financial Governance:

The Ministry of Finance is currently working on holding focused discussion sessions with federal entities to share insights and lessons learned ahead of adopting the final version of the Financial Policies and Procedures Manual.

In line with its future direction, the Ministry confirmed its commitment to continuously monitoring the outputs of the International Public Sector Accounting Standards Board (IPSASB), particularly the climate disclosures standard currently under development, which the Ministry intends to include in the Federal Government's Accounting Standards Manual to support sustainable transformation and strengthen financial governance in the UAE.

The session also discussed the main implementation considerations and next steps, along with the Ministry's recommendations to ensure smooth and effective application of the updated manuals, enhancing financial performance and consolidating adherence to international standards.

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