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IFRS application around the world

Analysis of the IFRS jurisdiction profiles


To assess progress toward the goal of global accounting standards, the IFRS Foundation is developing profiles of application of IFRS Standards in individual jurisdictions. View the jurisdiction profiles.

Currently, profiles are completed for 143 jurisdictions, including all of the G20 jurisdictions.

The 143 jurisdictions represent all parts of the globe, as follows:

 

Number of Jurisdictions Percent of total
Europe 43 30%
Africa 20 14%
Middle East 12 8%
Asia and Oceania 31 22%
Americas 37 26%
Totals 143 100%

 

The following overall observations can be made about the information in the profiles describing how IFRS Standards are applied in each of the 143 jurisdictions:

  1. Commitment to a single set of global accounting standards: Nearly all of the jurisdictions (133 of the 143) have made a public commitment supporting a single set of high quality global accounting standards. Only Albania, Belize, Bermuda, Cayman Islands, Egypt, Macao, Paraguay, Suriname, Switzerland and Vietnam have not.
  2. Commitment to IFRS Standards: The relevant authority in all but 8 of the 143 jurisdictions (Belize, Bermuda, Cayman Islands, Egypt, Macao, Suriname, Switzerland and Vietnam) has made a public commitment to IFRS Standards as the single set of global accounting standards. Even in the absence of a public statement, IFRS Standards are commonly used by publicly accountable entities (listed companies and financial institutions) in Belize, Bermuda, Cayman Islands, and Switzerland.
  3. Adoption of IFRS: 119 jurisdictions (83 per cent of the profiles) require IFRS Standards for all or most domestic publicly accountable entities (listed companies and financial institutions) in their capital markets. All but one of those have already begun using IFRS Standards. Bhutan will begin using IFRS Standards in 2021. Some comments on the remaining 24 jurisdictions that have not adopted:
    1. Twelve jurisdictions permit, rather than require, IFRS Standards: Bermuda, Cayman Islands, Guatemala, Honduras, India, Japan, Madagascar, Nicaragua, Panama, Paraguay, Suriname, Switzerland;
    2. Two jurisdictions require IFRS Standards for financial institutions but not listed companies: Saudi Arabia, Uzbekistan;
    3. One jurisdiction is in process of adopting IFRS Standards in full: Thailand;
    4. One jurisdiction is in process of converging its national standards substantially (but not entirely) with IFRS Standards: Indonesia; and
    5. Eight jurisdictions use national or regional standards: Bolivia, China, Egypt, Guinea-Bissau, Macao, Niger, United States, Vietnam.

The following table analyses the use of IFRS Standards in the 143 profiled jurisdictions by region of the world:

 

Number of Jurisdictions
Region Jurisdictions in the region Jurisdictions that require IFRS Standards 
for all or most domestic publicly accountable entities
Jurisdictions that require IFRS Standards as % of total jurisdictions in the region Jurisdictions that permit or require IFRS Standards for at least some (but not all or most) domestic publicly accountable entities Jurisdictions that neither require nor permit IFRS Standards for any domestic publicly accountable entities
Europe 43 42 98% 1 0
Africa 20 16 80% 1 3
Middle East 12 11 92% 1 0
Asia-Oceania 31 23 74% 3 5
Americas 37 27 73% 8 2
Totals 143 119 83% 14 10
As % of 143 100% 83%   10% 7%

 

The 119 jurisdictions classified as requiring IFRS Standards for all or most domestic publicly accountable entities include the EU Member States to which the IAS 39 Financial Instruments ‘carve-out’ applies. The carve-out affects fewer than two dozen banks out of the 8,000 IFRS companies whose securities trade on a regulated market in Europe.

The 119 also include several jurisdictions that have adopted IFRS Standards word for word as their national accounting standards (including Australia, Hong Kong, New Zealand and Korea (South)).

The 119 also include three jurisdictions that have adopted recent, but not the latest, bound volumes of IFRS Standards: Macedonia (2009); Myanmar (2010); and Venezuela (2008). Those jurisdictions are working to update their adoption to the current version.

The 143 profiles include all 31 member states of the European Union and the European Economic Area, where IFRS Standards are required for all companies whose securities trade in a regulated market.

  1. Scope of use of IFRS Standards: The 119 jurisdictions that require IFRS Standards for all or most domestic publicly accountable entities include eight that have no stock exchange but that require IFRS Standards for all financial institutions (Afghanistan, Angola, Belize, Brunei, Gambia, Kosovo, Lesotho, Yemen).  Of the 111 jurisdictions that do have stock exchanges, 6 do not require IFRS Standards for listed financial institutions (Argentina, El Salvador, Israel, Mexico, Peru, Uruguay) though they do require IFRS for other listed companies. All of the others require IFRS for all listed companies. Around 60 per cent of the 119 jurisdictions that require IFRS Standards for all or most domestic publicly traded companies also require IFRS Standards for some domestic companies whose securities are not publicly traded, generally financial institutions and large unlisted companies. Over 90 per cent of the 119 jurisdictions that require IFRS Standards for all or most domestic publicly traded companies also require or permit IFRS Standards for all or most non-publicly traded companies.
  2. Few modifications: The 143 jurisdictions made very few modifications to IFRS Standards, and the few that were made are generally regarded as temporary steps in the jurisdiction’s plans to adopt IFRS Standards. For example, the EU itself describes its IAS 39 ‘carve-out’ as ‘temporary’, and the ‘carve-out’ has been applied by fewer than two dozen banks out of the 8,000 IFRS companies whose securities trade on a regulated market in Europe. Several modifications related to IASB agenda projects that are now completed, including loan loss provisioning, use of the equity method to account for subsidiaries in separate company financial statements, and bearer agricultural assets. Jurisdictions have already begun eliminating those modifications. Several other modifications relate to projects currently on the IASB's agenda, including accounting for rate-regulated activities. A few jurisdictions deferred the effective dates of some Standards, particularly IFRSs 10, 11 and 12 and IFRIC 15, though most of those deferrals have now ended.
  3. Auditor’s report: In 87 jurisdictions, the auditor’s report (and/or basis of presentation note) refers to conformity with IFRS. In another 33 jurisdictions the auditor’s report refers to conformity with IFRS as adopted by the EU (including the 31 EU/EEA member states plus EU itself plus Albania, a potential accession country). In the 23 remaining jurisdictions the auditor’s report refers to conformity with national standards.
  4. IFRS for SMEs: 80 of the 143 jurisdictions require or permit the IFRS for SMEs Standard, and it is currently under consideration in an additional 11 jurisdictions.

IFRS provide the financial information for capital markets covering over half of the world’s GDP:

  1. Analysis of IFRS jurisdictions by GDP shows that capital market investors and lenders in jurisdictions with 58% of the world’s GDP receive IFRS financial statements. IFRS Standards are also used in some of the remaining economies, for example, by nearly 500 foreign companies whose securities trade in the United States.
  2. While the European Union is the single biggest part of the IFRS usage base, the non-EU/EEA jurisdictions that use IFRS Standards also are a large component of the IFRS users. All EU/EEA jurisdictions require IFRS Standards for all or most domestic listed companies. The 2014 GDP of those 31 jurisdictions totals $19.0 trillion US dollars.  The combined 2014 GDP of the non-EU/EEA jurisdictions that either require or permit IFRS Standards for all or most domestic listed companies is $26.9 trillion.

This page was last updated 22 March 2016.

 

Contact

Paul Pacter
Former Board member and project manager
email: ppacter@ifrs.org