Accounting for trusts and foundations in the UAE requires meticulous attention to detail, adherence to regulatory frameworks, and implementation of robust best practices to ensure transparency and compliance. At NH Management, we provide comprehensive guidance on managing the financial affairs of trusts and foundations under both DIFC and ADGM jurisdictions.

This article explores the essential aspects of trust and foundation accounting in Dubai, including regulatory compliance, reporting obligations, and practical best practices that enhance governance and financial integrity. Effective trust and foundation accounting in Dubai is essential for ensuring transparency, compliance, and long-term financial stability.

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Accounting Requirements for Trusts and Foundations in the UAE

Regulatory Compliance

Trusts and foundations in the UAE operate under specific regulatory frameworks to maintain legal standing and ensure transparency. Maintaining proper trust and foundation accounting in Dubai is not only a legal obligation but also a crucial element of good governance and transparency.There are two key regulatory bodies overseeing these structures:

• Dubai Financial Services Authority (DFSA): Regulates trusts and foundations within the Dubai International Financial Centre (DIFC).

• Abu Dhabi Global Market (ADGM): Oversees trusts and foundations within its jurisdiction with the Financial Services Regulatory Authority (FRSA).

Both jurisdictions require entities to comply with International Financial Reporting Standards (IFRS) to promote consistency, transparency, and comparability across financial statements. By adhering to IFRS and local DFSA or ADGM rules, organizations strengthen their trust and foundation accounting in Dubai framework and maintain global credibility.

Core Compliance Requirements

• Registration: Trusts and foundations must be registered with their respective authorities (DFSA or ADGM).

• Annual Audits: Each entity must conduct yearly audits through a certified public accountant to verify financial statements.

• Financial Records: Maintain complete, accurate, and up-to-date records for all income, expenses, and transactions.

Key IFRS Standards
Trusts and foundations in the UAE must follow several International Financial Reporting Standards (IFRS) to ensure consistent and transparent financial reporting. The most relevant standards include:

• IFRS 9 – Financial Instruments: This standard outlines the principles for classifying, measuring, and recognizing impairment of financial instruments.

• IFRS 13 – Fair Value Measurement: It provides a framework for measuring fair value and making the necessary disclosures to ensure transparency.

• IFRS 15 – Revenue from Contracts with Customers: This standard establishes principles for recognizing revenue and provides guidance on how to account for contracts with clients or beneficiaries.

Best Practices for Trust and Foundation Accounting

Proper accounting is not merely a compliance exercise — it is the foundation of sound governance and transparency. Below are five best practices for effective trust and foundation accounting in Dubai.

1 Detailed Record-Keeping

Maintaining detailed records of all financial activities ensures accuracy and traceability.

• Transaction Logs: Record all inflows and outflows, including amounts, dates, and purpose.

• Income and Expense Records: Classify revenue and expenses under consistent categories.

• Asset Management: Track owned assets, valuations, and any revaluations or disposals.

Comprehensive documentation supports annual audits and facilitates regulatory reporting. Accurate documentation supports annual audits and reinforces effective trust and foundation accounting in Dubai for all regulated entities.

2 Regular Reconciliation

Regular reconciliation ensures that internal financial records align with external statements and reports.

• Bank Reconciliation: Match cashbook entries against bank statements.

• Investment Reconciliation: Confirm investment holdings, valuations, and income distributions with custodians or brokers.

These steps help identify discrepancies early and safeguard against accounting errors or potential fraud.

3 Accurate Financial Reporting

Accurate financial reporting is essential for demonstrating transparency and accountability. The three primary reports required include:

• Income Statement: Summarizes revenues, expenses, and net income for the reporting period.

• Balance Sheet: Provides a snapshot of assets, liabilities, and equity.

• Cash Flow Statement: Shows cash inflows and outflows, offering insight into liquidity and financial stability.

Regular internal reporting also helps trustees and directors make data-driven decisions aligned with the foundation’s mission. Consistent and transparent reporting is a cornerstone of trust and foundation accounting in Dubai, helping entities meet audit and governance expectations.

4 Regulatory Filings and Audit Reports

Trusts and foundations must comply with periodic filing and disclosure requirements to maintain active status.

Regulatory Filings Include:

• Annual Financial Statements: Submitted to the relevant regulatory authority (DFSA or ADGM).

• Audit Reports: Prepared by independent certified auditors.

• Tax Filings: While many foundations enjoy tax exemptions, timely filing of required returns ensures compliance with UAE tax laws.

These filings strengthen credibility and demonstrate commitment to governance and accountability.

5 Transparency and Governance

Strong governance practices are central to sustainability and trustworthiness.

• Board Oversight: Active monitoring by trustees or directors ensures responsible decision-making.

• Regular Meetings: Review financial performance, risk management, and investment strategy.

• Stakeholder Communication: Provide periodic updates to beneficiaries and regulators to reinforce trust and confidence.

Adopting good governance not only ensures compliance but also enhances reputation among partners and donors.

Trust and Foundation Accounting Services in the UAE with NH Management

Effective trust and foundation accounting in Dubai requires more than technical compliance — it demands expertise in regulatory interpretation, financial reporting, and governance frameworks. At NH Management, we help clients navigate these complexities with precision and confidence.

Our services cover:

• DIFC and ADGM trust and foundation structuring.

• IFRS-compliant bookkeeping and audit coordination.

• Preparation and submission of annual reports.

• Governance and internal control reviews.

• Ongoing compliance monitoring.

By partnering with our experts, your trust or foundation can maintain full transparency, ensure financial integrity, and achieve long-term sustainability. Partnering with NH Management ensures your trust and foundation accounting in Dubai follows best practices, meets all regulatory standards, and supports sustainable financial management. With professional guidance, trust and foundation accounting in Dubai becomes a seamless process that ensures compliance, clarity, and long-term sustainability.

For tailored support on trust and foundation accounting in Dubai, contact NH Management today email at in**@**********nt.com or call: +971 4 222 1327. Our specialists will guide you through every step of the process — from setup and registration to ongoing reporting and compliance. You can also explore our family office and wealth advisory solutions to ensure your trust and foundation align with broader estate and succession planning objectives.