IFRS Standards: New Profiles Posted For Iran And Kazakhstan
We have posted new profiles on the use of IFRS Standards in Iran and Kazakhstan. In addition, we have significantly modified our profile on Saudi Arabia to reflect the country’s adoption of IFRS Standards for all publicly accountable entities, including listed companies.
Our website now has profiles for 149 jurisdictions. In 84 percent, or 125 of the 149 jurisdictions profiled, IFRS Standards are required for most or all listed companies and banks. Thirteen of the remaining 24 jurisdictions either permit IFRS Standards or require IFRS Standards for some, but not all or most, listed companies or banks.
The three profiles show that in:
Iran has required large listed companies to apply IFRS Standards (with two optional modifications) starting with Iranian year 1395, the financial year that started 20 March 2016. Other listed companies are permitted, but not required, to adopt IFRS Standards (with the two optional modifications) at that time.
Companies that were not required to apply IFRS Standards in the Iranian year 1395 (or the financial year 2016) will be required to apply IFRS Standards (with the two modifications) from 1396, the financial year beginning March 2017. The securities regulator will announce criteria for identifying large listed companies. The optional modifications permit amortisation of goodwill and measurement of investments in unquoted equity instruments at cost, subject to write-downs for impairment. Adoption of the IFRS for SMEs Standard is under consideration.
Kazakhstan has adopted full IFRS Standards and the IFRS for SMEs Standard without modification. The law and the listing rules of the Kazakhstan Stock Exchange require that all listed companies must use IFRS Standards.
IFRS Standards are mandatory for financial statements of large business enterprises as well as for public-interest companies, including all financial institutions. Medium-sized business enterprises and state enterprises are required to use either IFRS Standards or the IFRS for SMEs Standard. Small enterprises must choose between the IFRS for SMEs Standard and a national standard.
Saudi Arabia requires the use of IFRS Standards for all banks and insurance companies, listed or unlisted. For all other listed companies, the use of IFRS Standards will start in 2017. For other publicly accountable entities, the use of IFRS Standards will start in 2018.
Saudi Arabia added disclosure requirements to several IFRS Standards, mainly to reflect Sharia or local law. Listed companies will not be able to apply the options to use the IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets revaluation model for property, plant, and equipment and intangible assets or the option the fair value model for investment property in IAS 40 Investment Property for the first three years, after which that decision will be reassessed.
Saudi Arabia adopting the IFRS for SMEs Standard to be effective in 2018 for use by all non-publicly accountable entities. Some entities would be permitted to adopt the Standard early, in 2017. Currently, the country envisions adding some disclosures to the IFRS for SMEs Standard but not otherwise modifying the Standard.