The Ministry of Finance has issued its Notification No.1137/MoF dated 27 April 2020 relating to the extension of the International Financial Reporting Standards (IFRS) transition period.
Under a previous Notification No.697/MoF dated 20 March 2017, Public Interest Entities (PIE) were required to adopt the IFRS by year 2021 which should have been the last year for implementing these new standards.
With its Notification No.1137/MoF, the Ministry of Finance decides to extend the IFRS transition period (which was ending this year) up to year 2025. The Ministry of Finance clarifies the below for PIE:
- During the extended transition period FY2021-FY2025, PIE shall prepare their financial statements in accordance with IFRS as soon as possible. While starting the transition or transitioning to IFRS, PIE shall inform the Ministry of Finance about their transition plan;
- For PIE who already started to implement IFRS between FY2017-FY2019, they shall tend to full implementation of IFRS during the period FY2021-FY2025 and inform the Ministry of Finance about their transition plan;
- For PIE who are already fully implementing IFRS, they shall keep fully implementing the new standards in order to stay compliant with Accounting Law;
- Any additional regulations that may come from Ministry sectors in relation with IFRS, PIE shall comply with. In case of issue in implementing IFRS, Ministry of Finance recommends contacting Accounting Department to find a solution.
IFRS are a key milestone for companies operating in international and regulated environment with a significant impact on business operations and financial reporting. IFRS provide benefits in shareholder reporting and in performance management, while allowing international investors to bring new funds into the business. Companies shall carefully consider their investment in Process, People and System for a successful IFRS conversion.