MUSCAT : This decision, effective following its publication in the Official Gazette, aims to enhance transparency, consistency, and comparability in financial reporting, while also accommodating small and medium-sized enterprises (SMEs) with a simplified reporting framework.

The resolution, which is based on the law regulating the accounting and auditing profession (Royal Decree No. 86/77) and the establishment of the Financial Services Authority (Royal Decree No. 20/2024), stipulates that all practitioners in the accounting and auditing field must adhere to IFRS when preparing financial statements. However, the decision allows SMEs to opt for the simplified IFRS for SMEs model, as long as it does not conflict with any regulatory requirements.

One key feature of the decision is the requirement for entities to include justifications for adopting either the full IFRS or the simplified IFRS for SMEs model. Financial reports must detail the reasons for choosing the reporting model and the resulting financial implications, ensuring transparency in financial disclosures.

The resolution calls for compliance with the newly adopted financial reporting standards, reinforcing Oman’s commitment to improving financial transparency and enhancing the country’s standing in the global business community.

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