Many jurisdictions that maintain their own local GAAP claim that their local GAAP is "based on" or "similar to" or "converged with" IFRSs. In some cases the wording changes seem minor, and in other cases the wording is quite different. Sometimes, the jurisdiction's local GAAP is not in English. Often, not all IASs/IFRSs have been adopted locally. Often there is a time lag in adopting an IFRS as local GAAP. We are not in a position to compare national or regional GAAPs to IFRSs in detail. Therefore, this table only reports direct use of IFRSs in individual countries or regions. Direct use means that the basis of preparation note and the auditor's report will refer to conformity with IFRSs.
For unlisted companies, "IFRSs required for all" means that if an unlisted company is required or chooses to prepare general purpose financial statements, it must use full IFRSs. It does not necessarily mean that all unlisted companies in that jurisdiction are required to prepare IFRS financial statements.
Note: We are currently reconsidering the format of our table to reflect differing degrees of convergence with IFRSs - you can access our revised approach in relation to use of IFRSs by domestic listed companies of the G20 countries. Merged entries with only a footnote in the table below are temporary only and are not included in the totals at the end of the table.
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Financial Institutions from 2016
Important: This tabulation should be read in conjunction with the notes below.
Information, to the best of our knowledge, for 175 jurisdictions for domestic listed companies (totals without CN):
*Includes 31 EU/EEA member states (Note 1) and 5 jurisdictions that have adopted full IFRS equivalents (Notes, 2 3, and 7)
Of the 132 jurisdictions (25 + 9 + 98) that permit or require IFRSs for domestic listed companies:
Important: This tabulation should be read in conjunction with the notes below.
Of the 175 jurisdictions in table for unlisted companies (totals without CN):
This country is an EU/EEA member state. The audit report and basis of presentation note refer to compliance with "IFRSs as adopted by the EU". The EU has adopted virtually all IFRSs, though there is a time lag in adopting several recent IFRSs and one aspect of IAS 39 was modified. The modification affects approximately 50 EU banks following IFRSs (as adopted in the EU). The EU is also permitting the issuance of separate company financial statements marked as complying with IFRSs as adopted in the EU in circumstances contradictory to IAS 27. Click for latest information on which of the EU and EEA members use this option.
Australia and New Zealand have adopted national standards that they describe as IFRS-equivalents. Those standards include the requirement from IAS 1.16 that "an entity whose financial statements comply with IFRSs shall make an explicit and unreserved statement of such compliance in the notes". In both countries this statement is also made in the audit report.
Hong Kong has adopted national standards that are identical to IFRSs, including all recognition and measurement options, but in some cases effective dates and transition are different. Companies that are based in Hong Kong but incorporated in another country are permitted to issue IFRS financial statements rather than Hong Kong GAAP statements.
By law, all Uruguayan companies must follow IFRSs existing at 31 July 2007. There are also a few additional local standards that must be complied with. The auditor's report refers to conformity with Uruguayan GAAP.
Listed companies in Turkey are permitted to follow IFRSs in one of two ways due to delays in translating IFRSs into Turkish:
All banks and insurance companies listed on the Saudi Stock Exchange must use IFRSs. Listed entities are required to report using the "national standards that are closely converged with full IFRSs" as issued by the SOCPA, which are IFRSs with some options removed and some disclosure requirements added as well as additional standards and pronouncements endorsed by the SOCPA for matters not covered by IFRSs but that are relevant in Saudi Arabia (for example for religious reasons).
Canada has adopted IFRSs in full as Canadian Financial Reporting Standards effective 2011. However, mandatory adoption of IFRSs has been deferred for entities with rate-regulated activities (until 2015) and investment companies (until 2014). Those deferrals were provided to give time for the IASB to complete projects affecting those entities.
Since April 2010, the Securities Exchange Board of India (SEBI) has provided an option to listed entities having subsidiaries to submit their consolidated financial results either in accordance with the accounting standards specified in section 211(3C) of the Companies Act, 1956, or in accordance with IFRS (with required reconciliations). Submission of separate financial results to the stock exchanges will continue to be in accordance with Indian GAAP.
In January 2015, the Indian Ministry of Corporate Affairs (MCA) released a revised roadmap that reflects that, in essence, companies with a net worth of Rs. 500 crore or more will have to mandatorily follow Indian Accounting Standards (Ind AS), which are largely converged with International Financial Reporting Standards (IFRSs), from 1 April 2016. Corporates having a net worth of less than Rs. 500 crore but are listed, or in the process of getting listed, and companies with a net worth of Rs. 250 crore or more will have to follow the new norms from 1 April 2017. The new road map exempts banking, insurance and non-banking finance companies. The roadmap still needs to be officially notified, which is expected "shortly".
On 14 November 2008, the US SEC published for comment a proposed Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by US Issuers. Currently, domestic US SEC registrants are required to use US GAAP and are not permitted to use IFRSs.
In adopting IFRSs as Philippines Financial Reporting Standards (PFRSs), various modifications were made to IFRSs including the following 'transition relief':
On 11 Dec 2009, the Financial Services Authority of Japan (FSA) published final Cabinet Office Ordinances that allow some Japanese public companies voluntarily to start using IFRSs designated by the Commissioner of the FSA in their consolidated financial statements starting from the fiscal year ending 31 March 2010. For details on which companies are eligible, and what special disclosures are required, please see our jurisdiction page for Japan.
The audit report refers to conformity with either IFRSs or IFRSs designated by the FSA of Japan, depending on a status of designation. If the designated IFRSs is the same as effective IFRSs, the audit report should refer to IFRSs while if not (for example, delay in designation etc.), a reference should be made to IFRSs designated by the FSA of Japan.
Singapore has adopted most IFRSs essentially word for word as Singapore equivalents of IFRSs. However, they have made changes to the recognition and measurement principles in several IFRSs when adopting them as Singapore standards, and they have not adopted several other IFRSs. In May 2009 the government announced Singapore Financial Reporting Standards will be fully converged with IFRSs by 2012. The fully-converged standards would apply to all Singapore-incorporated companies listed on the Singapore Stock Exchange. However, in March 2012, the Singapore Accounting Standards Council (ASC) announced that full convergence will not occur in 2012, as had originally been planned. It is now expected to occur in 2018.
The new Chinese Accounting Standards for Business Enterprises (CAS) were published by the Ministry of Finance (MoF) in 2006 and became effective on January 1, 2007. These standards are substantially converged with IFRSs, except for certain modifications (e.g. disallow the reversal of impairment loss on long term assets) which reflect China's unique circumstances and environment.
In April 2010, the MoF released the roadmap for continuing convergence of CAS with IFRSs. China has made a commitment to convergence with IFRSs. Standard convergence is an ongoing process and the MoF is continuing to spend significant effort on the ongoing convergence between CASs and IFRSs.
The CASs are now mandatory for entities including PRC-listed companies, financial institutions (including entities engaging in securities business permitted by China Securities Regulatory Commission), certain state-owned enterprises, private companies in certain provinces. In the roadmap, the MoF has indicated its intention to have all large and medium-sized enterprises (regardless whether they are listed companies or private companies) adopt the new CAS by 2012.
In December 2007, the HKICPA recognized CAS equivalence to HKFRS, which are identical to IFRSs, including all recognition and measurement options, but have in some cases different effective dates and transition requirements. From then the CASC and HKICPA together with IASB created an ongoing mechanism to reinforce continuously such equivalence.
In December 2010, the Hong Kong Stock Exchange decided to allow mainland-incorporated companies listed in Hong Kong to have an option to present financial statements using CASs and audited by an approved mainland audit firm. A number of such companies have chosen to present financial statements using CASs for annual reporting.
The EU Commission permits Chinese issuers to use CAS when they enter the EU market without adjusting financial statement in accordance with IFRS endorsed by EU.
The Eastern Caribbean Securities Exchange (ECSE) is a regional securities market located in St Kitts. It is designed to facilitate the buying and selling of financial products – including corporate stocks and bonds and government securities – for the eight member territories of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines.
Malaysian Financial Reporting Standards (MFRS), which are fully IFRS-compliant and permit entities to make an unreserved statement of compliance with IFRS, are required to be followed by Malaysian non-private entities for annual periods beginning on or after 1 January 2012. However, certain entities in the real estate and agricultural industries are not required to apply MFRS until annual periods beginning on or after 1 January 2017 (early adoption permitted).
On 11 November 2008, the Mexican Securities and Exchange Commission (Comision Nacional Bancaria y de Valores, or CNBV) announced that all companies listed on the Mexican Stock Exchange will be required to use IFRSs starting 2012. Listed companies will have the option to use IFRSs earlier – starting as early as 2008 – subject to requirements that will be established by the CNBV.
Pakistan has adopted most but not all IFRSs. The standards not adopted are IFRS 1, IFRS 9, IFRS 14, IFRS 15, IFRIC 4, and IFRIC 12.
In addition, standards relevant for financial institutions, IAS 39 Financial Instruments: Recognition and Measurement, IAS 40 Investment Property, and IFRS 7 Financial Instruments: Disclosures, have not been adopted for banks and other financial institutions regulated by the State Bank of Pakistan (SBP). SBP has prescribed its own criteria for recognition and measurement of financial instruments for such financial entities.
In 2004, the Venezuelan Federation of Certified Public Accountants adopted IFRSs as they existed in 2004 as Venezuelan accounting standards. They were required for listed companies in 2005, for large unlisted companies in 2006, and for other companies starting 2007. Currently, Venezuela applies IFRS as issued in 2016 with some specific modifications related to general-price-level adjustments issued by the FCCPV in the Aplication Bolletins (BA VEN-NIF).
A February 2010 resolution of the Institute of CPAs of the Dominican Republic provides for a gradual implementation of IFRSs for listed companies, with some standards mandatory starting in 2010 while others are phased in up to 2014.
On 28 July 2010, the Nigerian Federal Executive Council approved 1 January 2012 as the effective date for convergence of accounting standards in Nigeria with International Financial Reporting Standards (IFRS). The Council has directed the Nigerian Accounting Standards Board (NASB), under the supervision of the Nigerian Federal Ministry of Commerce and Industry, to take further necessary actions to give effect to Councils' approval.
Credit institutions, insurance and re-insurance companies can choose between IFRSs as adopted by the EU and Luxembourg accounting principles, both in separate and consolidated financial statements. All other entities need to obtain the approval of the Luxembourg Ministry of Justice to prepare separate or consolidated financial statements in accordance with IFRSs as adopted by the EU. The Ministry of Justice grants the derogation on the reasoned opinion of the Commission des Normes Comptables ('CNC', the Luxembourg Accounting Standards Board). In early 2009, a draft law was introduced by the Luxembourg authorities, proposing the introducing of IFRSs for commercial companies. Accordingly, it is anticipated that IFRSs will be introduced into the Luxembourg commercial law as an alternative to the current Luxembourg accounting principles in due course.
Although IFRS is not required for unlisted companies other than banks, it is a considered best practice for these companies to adopt IFRSs.
Libyan stock market regulations require the use of IFRSs for all listed companies and the Libyan Banking Law requires the use of IFRSs for all commercial banks, however, it is our understanding that practice has yet to apply IFRSs.
Publicly traded entities, public interest entities and large companies that a) are branches of parent companies that report under IFRS, b) parent companies of branches that report under IFRS and c) companies exporting or importing over 50% of their sales or purchases will adopt full IFRS in 2015, with 2014 being the year of transition (meaning opening balances of the Statement of Financial Position as at 1 January 2014).
IFRS are required for the consolidated financial statements of all entities whose securities are listed on stock exchanges, for banks and other credit institutions, insurance companies (except those with activities limited to obligatory medical insurance), non-governmental pension funds, management companies of investment and pension funds, and clearing houses. Additionally, certain state-owned companies are required to prepare consolidated IFRS financial statements by separate decrees of the Russian government.
Publicly listed entities that previously reported under US GAAP have an extension for IFRS transition till 2015.
IFRS are mandatory for consolidated financial statements. Standalone (separate) financial statements for all entities must be prepared using RAS.
In June 2011 the changes in law "On accounting and financial reporting in Ukraine" were signed by the President of Ukraine. In accordance with such changes, public interest entities (Public Joint Stock companies, banks, insurance companies, and other companies that operate in financial markets) are required to prepare financial statements in accordance with IFRS. The Cabinet of Ministers of Ukraine may provide an additional list of entities subject to reporting under IFRS.
In December 2011, the National Bank of Ukraine, Ministry of Finance and Ministry of Statistics issued a joint letter clarifying the adoption of IFRS in Ukraine. Banks are required to use 1 January 2011 as date of transition to IFRS. All other entities subject to IFRS adoption may choose either 1 January 2011 or 1 January 2012 as a date of transition to IFRS. Financial statements for 2011 are to be prepared based on Ukrainian Accounting Standards. All other entities may voluntary choose IFRS as their reporting framework.
Indonesia's approach to IFRS adoption is to maintain its national GAAP (Indonesian Financial Accounting Standards, IFAS) and converge it gradually with IFRSs as much as possible. Currently there is no plan (and consequently no timetable) for a full adoption of IFRSs.
Indonesia is striving to minimise the significant differences between IFRSs and IFASs gradually. Since 2012, the local standards applied in Indonesia are based on those IFRSs that were effective at 1 January 2009. However, some modifications were made. Indonesia will continue the convergence process by considering recent amendments, newer standards (eg IFRSs 9 to 13), and IFRS Exposure Drafts.
Currently, the DSAK is committed to maintain a one year difference with IFRS as issued by the IASB until Indonesia decides when it will go for full adoption. Therefore, the expectation is to converge Indonesian national GAAP (PSAK) with IFRSs as they stood on1 January 2014 as of 1 January 2015, with IFRSs as they stood on1 January 2015 as of 1 January 2016 etc. unless there is a reason not to do so. For example, IFRS 9 will not be adopted piecemeal; Indonesia is waiting until all phases are completed before considering adopting the standard.
Indonesia will also consider results from the implementation of the first wave of standards resulting from the convergence process before new standards are developed. The jurisdiction will also provide for transition periods of three to four years for new standards, however, Indonesia is striving at the same time to keep the gaps between the effective dates of new IFRSs and new IFASs that are based on them as short as possible.
Domestic listed companies do not have the option to fully comply with IFRS.
There is no stock exchange in Albania. Nevertheless, the Accounting Law passed in 2004 requires listed companies to apply IFRSs as issued by the IASB.
There is no stock exchange in Afghanistan. Nevertheless, all companies other than micro-sized companies are required to use IFRS as issued by the IASB.
We are seeking information on the following jurisdictions. If you can help us with missing data, please send us an email. If possible, please include links to, or citations of, documents from which the information can be verified.
| Domestic listed companies | Domestic unlisted companies | ||||||
|---|---|---|---|---|---|---|---|
| Code | Jurisdiction | IFRSs not permitted | IFRSs permitted | IFRSs required for some | IFRSs required for all | Audit report states compliance with IFRS | Use of IFRSs by unlisted companies |
| AD | Andorra | ||||||
| CM | Cameroon | ||||||
| CF | Central African Republic | ||||||
| TD | Chad | ||||||
| CG | Congo | ||||||
| CD | Democratic Republic of the Congo | ||||||
| DJ | Djibouti | ||||||
| GQ | Equatorial Guinea | ||||||
| ET | Ethiopia | ||||||
| GA | Gabon | ||||||
| GN | Guinea | ||||||
| GW | Guinea-Bissau | ||||||
| KP | Korea (North) | ||||||
| MC | Monaco | ||||||
| RW | Rwanda | ||||||
| SC | Seychelles | ||||||
| SO | Somalia | ||||||
| SD | Sudan | ||||||
| TO | Tonga | ||||||
| TC | Turks and Caicos Islands | ||||||
| EH | Western Sahara | ||||||