IFRS UPDATES AND AUDIT METHODOLOGIES - TRAINING FOR THE MOORE STEPHENS QATAR AUDIT STAFF
MS Qatar hosted a two-day training session on IFRSUpdates and Audit Methodologies last November 29 and 30, 2016 at Holiday Villa Doha.
The training was conducted by Moore Stephens Dubai learning champions, headed by Mr. Magesh wanath Mani Rao (Partner –Assurance) and Mr. Shezad Farad Lakdawala. The session was attended by MS Qatar technical staff members and head of departments as well.
The objective of the training is to establish the principles that an entity apply to report useful information to users of financial statements about the nature, timing and uncertainty of revenue and cash flows arising from a contract with a customer.
An entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
IFRS 15 (International Financial Reporting Standards) specifies how and when an IFRS reporter will recognize revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures. The standard provides a single,principles based five step model to be applied to all contracts with customer.
The Qatari government confirmed changes to the Kafala sponsorship system implemented last 14 December 2016. The existing work sponsorship framework in Qatar, known as Kafala, currently requires all foreign national employees to obtain their employers' consent prior to travelling abroad or when switching jobs. The new regulations are aimed at making it easier for foreign nationals to change jobs and leave the country.
Some of the more pertinent changes include:
• Expatriates now having to apply to the government, rather than their sponsor (employer), for an exit permit;
• Removing all government processing fees for exit permits;
• The sponsor having an opportunity to object to any employee's travel plans - employees will be able to appeal against any such objections;
• Foreign nationals who have completed their fixed-term contracts needing the permission of the government, rather than the consent of their sponsor (via a No Objection Certificate), to take up another job;
• Employers restricted from retaining their employees’ passports; and
• All employees needing to sign a formal employment contract.
"This agreement comes from a sense of responsibility from Opec member countries and non-Opec member countries for the general well-being and health of the world economy," HE the Minister of Energy and Industry Dr Mohamed bin Salah al-Sada had said after the meeting.
In view of the simmering differences earlier among its members on output cut, Opec secretary general Mohamed Barkindo had earlier cautioned that anything short of implementation of the accord could lead to the elongation of the rebalancing process, with further deterioration of financial conditions and setbacks in investments extending into a third year, which would be unprecedented. The country allocations and an independent production monitoring committee are also part of the deal, according to which Saudi Arabia is expected to cut production by 486,000 bpd and Iraq by 210,000; while Iran would increase it by 90,000 bpd.
In line with recommendations from the high-level committee of the ‘Algiers Accord’, the November 30 meet also agreed to institutionalize a framework for cooperation between Opec and non-Opec producing countries on a regular and sustainable basis. According to Opec's November oil report, world oil demand is expected to increase by 1.23mn bpd in 2016 to average 94.4mn bpd; while supply is expected to contract by 0.78mn bpd. Expecting annual global oil demand to grow (by an average of 1.2mn barrels a day), Bank of America Merrill Lynch had said "we still see downside risks to our forecast", keeping its 2017 forecasts for Brent and WTI crude oil unchanged at $61 and $59 per barrel respectively.
Qatar has also seen huge budget deficits, with the government taking austerity measures to bring things under control. Price of fuel heavily subsided in the past is now regulated monthly according to fluctuations in international prices and there are also talks of implementation of value added tax (GCC wide) in the long run.
The training was conducted by Moore Stephens Dubai learning champions, headed by Mr. Magesh wanath Mani Rao (Partner –Assurance) and Mr. Shezad Farad Lakdawala. The session was attended by MS Qatar technical staff members and head of departments as well.
The objective of the training is to establish the principles that an entity apply to report useful information to users of financial statements about the nature, timing and uncertainty of revenue and cash flows arising from a contract with a customer.
An entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
IFRS 15 (International Financial Reporting Standards) specifies how and when an IFRS reporter will recognize revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures. The standard provides a single,principles based five step model to be applied to all contracts with customer.
NEW ADDITION TO THE FAMILY
Moore Stephens Qatar welcomes a new member of the family
Mr. Zeid Al Alami recently joined our Team as the Director overseeing the Advisory division of Moore Stephens. An experienced Business Advisory professional having a track record of leading businesses to success, with an over 15 years of advisory, management, identifying new opportunities, business startups and growth experience. Majority of his professional experience was with Talal Abu Ghazaleh – Jordan & Qatar, KPMG – Qatar & Bahrain, PKF – Qatar.
Qualifications
• Project Management – PMI Standards
• Six Sigma • ISO 9000, 14000, 18000 Lead Auditor
• Certified Management Accountant (CMA)
Areas of Practice
• Management Consultancy
• Transaction and corporate finance advisory
• Advisory Project Management
• Internal Audit
QATAR NEWLABOUR LAW
The Labor Law of Qatar provides a body of laws and regulations outlining the legal rights, restrictions and obligations of workers, employers and workers committees. All parties involved should adhere to the Labor Law.The Qatari government confirmed changes to the Kafala sponsorship system implemented last 14 December 2016. The existing work sponsorship framework in Qatar, known as Kafala, currently requires all foreign national employees to obtain their employers' consent prior to travelling abroad or when switching jobs. The new regulations are aimed at making it easier for foreign nationals to change jobs and leave the country.
Some of the more pertinent changes include:
• Expatriates now having to apply to the government, rather than their sponsor (employer), for an exit permit;
• Removing all government processing fees for exit permits;
• The sponsor having an opportunity to object to any employee's travel plans - employees will be able to appeal against any such objections;
• Foreign nationals who have completed their fixed-term contracts needing the permission of the government, rather than the consent of their sponsor (via a No Objection Certificate), to take up another job;
• Employers restricted from retaining their employees’ passports; and
• All employees needing to sign a formal employment contract.
OPEC REACHES DEAL TO CUT OIL OUTPUT
The OPEC (Organization of Petroleum-Exporting Countries) oil cartel reached a deal to reduce its output for the first time in eight years, Qatar’s Energy Minister and President of OPEC conference said Qatar cut its oil production last January 1, in line with the global oil producers' decision to collectively reduce output by 1.2mn bpd in order to rebalance an already over-supplied global market. The decision comes in line with Qatar’s commitment to the recently agreed production levels by the members of the Organisation of the Petroleum Exporting Countries (Opec) during its ministerial meeting held on November 30.While Opec members have agreed to reduce output by 1.2mn bpd, non-Opec countries agreed to cut by 558,000 bpd. After weeks of hectic parleys, Opec members had inked a pact on a cut in oil production to 32.5mn bpd in early 2017, from an estimated 33.6mn bpd in October 2016."This agreement comes from a sense of responsibility from Opec member countries and non-Opec member countries for the general well-being and health of the world economy," HE the Minister of Energy and Industry Dr Mohamed bin Salah al-Sada had said after the meeting.
In view of the simmering differences earlier among its members on output cut, Opec secretary general Mohamed Barkindo had earlier cautioned that anything short of implementation of the accord could lead to the elongation of the rebalancing process, with further deterioration of financial conditions and setbacks in investments extending into a third year, which would be unprecedented. The country allocations and an independent production monitoring committee are also part of the deal, according to which Saudi Arabia is expected to cut production by 486,000 bpd and Iraq by 210,000; while Iran would increase it by 90,000 bpd.
In line with recommendations from the high-level committee of the ‘Algiers Accord’, the November 30 meet also agreed to institutionalize a framework for cooperation between Opec and non-Opec producing countries on a regular and sustainable basis. According to Opec's November oil report, world oil demand is expected to increase by 1.23mn bpd in 2016 to average 94.4mn bpd; while supply is expected to contract by 0.78mn bpd. Expecting annual global oil demand to grow (by an average of 1.2mn barrels a day), Bank of America Merrill Lynch had said "we still see downside risks to our forecast", keeping its 2017 forecasts for Brent and WTI crude oil unchanged at $61 and $59 per barrel respectively.
Qatar has also seen huge budget deficits, with the government taking austerity measures to bring things under control. Price of fuel heavily subsided in the past is now regulated monthly according to fluctuations in international prices and there are also talks of implementation of value added tax (GCC wide) in the long run.