UAE Accounting & Tax Glossary

Gross Margin

Gross margin is a measure of a company's profitability that represents the percentage of revenue that the company retains after accounting for the cost of goods sold. It is calculated by dividing the company's gross profit by its total revenue.

Gross Merchandise Value (GMV)

Gross merchandise value (GMV) is a measure of the total value of goods sold through a particular platform or channel.

Gross Profit

Revenue minus the direct cost of goods sold (COGS). Gross profit margin is one of the most important indicators of business efficiency, frequently reviewed by UAE banks and investors.

Gross profit margin

Gross profit margin is a measure of a company's profitability that indicates how much of its total revenue is left after accounting for the cost of producing and selling its products or services.

Gross Retention

Gross retention refers to the percentage of a company's customers or clients that remain with the company over a specific period of time.

IFRS

The globally recognised accounting standards that UAE businesses are required to follow when preparing financial statements. IFRS compliance is a prerequisite for audit, banking, and corporate tax reporting in the UAE.

Indirect costs

Indirect costs, also known as overhead costs or overhead expenses, are expenses that are not directly related to the production of a good or service.

Intangible assets

Intangible assets are non-physical assets that have a value to a company but cannot be touched or seen.

Invoice

A formal document issued by a seller to a buyer specifying the goods or services provided, amounts due, and payment terms. In the UAE, VAT-registered businesses must issue tax invoices that include the supplier's TRN (Tax Registration Number), the date, VAT amount, and other FTA-required details.

Journal entry

A journal entry is a record of a financial transaction in a company's accounting records.

Key Performance Indicator (KPI)

A key performance indicator (KPI) is a measurable value that is used to assess the performance of an organization, team, or individual against a set of targets or objectives.

Last Twelve Months (LTM)

Last Twelve Months (LTM) is a term used to refer to the most recent twelve months for which financial data is available.

Finances Glossary

Glossary