UAE Accounting & Tax Glossary

Double-Trigger Acceleration

Double-Trigger Acceleration is a provision in a contract that allows for the acceleration of vesting of stock options or other equity-based compensation in the event of certain specified events.

EBITDA

EBITDA is an acronym that stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.

Economic Substance Regulations (ESR)

UAE rules requiring businesses in certain high-value sectors to prove they have real, active operations in the UAE — not just a registered address.

Entrepreneur in Residence (EIR)

An Entrepreneur in Residence (EIR) is a position within a company or organization that is typically held by an experienced entrepreneur who has been brought in to help the organization develop new products or services, or to improve its existing ones.

Equity

The net value of a business — what remains after subtracting all liabilities from total assets. Also called shareholders' equity or net worth.

Expense

An expense is a cost that a company incurs in order to generate revenue.

Expense Claim

A request by an employee to be reimbursed for business costs they paid personally — such as travel, meals, or equipment.

Fair Market Value (FMV)

Fair market value (FMV) is the estimated price at which an asset would be bought or sold in a transaction between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.

Financial management

Financial management is the process of planning, organizing, controlling, and monitoring a company's financial resources in order to achieve its business objectives and maximize its value.

Financial reporting

Financial reporting is the process of preparing and publishing financial statements that provide information about a company's financial performance and position.

Financial Statement

The formal reports summarising a business's financial activity and position. The core financial statements are the Profit and Loss Statement (P&L), Balance Sheet, and Cash Flow Statement. UAE businesses are typically required to produce audited financial statements for banking, trade licensing, and corporate tax purposes.

Fiscal year

The 12-month period a business uses for financial reporting and tax purposes. While most UAE businesses use the calendar year (January–December), the FTA permits alternative fiscal years.

Finances Glossary

Glossary