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Extent of IFRS applicationStatusAdditional Information
IFRS Accounting Standards are required for domestic public companies Bhutan began the process of converging to IFRS Accounting Standards in 2012. The Standards are known as Bhutanese Accounting Standards (BAS).

BAS 2020 (issued in 2021) is being revised, with the aim of BAS 2026, being issued 1 January 2027.

BAS 2020 included all IFRS Accounting Standards except for IFRS 17 Insurance Contracts. IFRS 17 will be adopted from 1 January 2027.

IFRS Accounting Standards are permitted but not required for domestic public companies
IFRS Accounting Standards are required or permitted for listings by foreign companies There are no foreign companies listed on the Bhutan stock exchange.
The IFRS for SMEs Accounting Standard is required or permitted IFRS for SMEs Accounting Standard adopted in its entirety as the Bhutan Accounting Standard for SMEs. Required for all unlisted companies.
The IFRS for SMEs Accounting Standard is under consideration

Profile last updated: 10 July 2026

RELEVANT JURISDICTIONAL AUTHORITY

Organisation
Accounting and Auditing Standards Board of Bhutan (AASBB)
Role of the organisation
In July 2010, the Royal Government of Bhutan approved the formation of the AASBB. The AASBB has authority to set Bhutanese accounting and auditing standards in line with international standards.
Website
https://aasbb.gov.bt
Email contact
aasbbhutan@gmail.com

COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS

Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Yes.
Has the jurisdiction made a public commitment towards IFRS Accounting Standards as that single set of high quality global accounting standards?

Yes.

This is laid out in the Finance Minister’s Executive Order of 16 February 2012 announcing the decision to adopt IFRS Accounting Standards. The reasons for adopting IFRS Accounting Standards rather than developing national standards are mentioned in ‘A proposal for Implementation’, January 2012.

What is the jurisdiction’s status of adoption?

In 2021 AASBB issued BAS 2020 (IFRS 2020) that included all IFRS Accounting Standards except for IFRS 17 Insurance Contracts. IFRS 17 will be adopted from 1 January 2027.

The AASBB is revising BAS 2020 with the aim of issuing BAS 2026, to be issued 1 January 2027, and aiming for full adoption of IFRS Accounting Standards in the next 2⁠–⁠3 years.

Additional comments provided on the adoption status?

In April 2012 Bhutan began the process of converging IFRS Accounting Standards in three phases. The Standards are known as Bhutanese Accounting Standards (BAS).

If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Accounting Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Accounting Standards in the jurisdiction.
Not applicable.

EXTENT OF IFRS APPLICATION

For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:

Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Accounting Standards in their consolidated financial statements?
BAS 2020 is required (see above).
If YES, are IFRS Accounting Standards REQUIRED or PERMITTED?

The Companies Act of Bhutan (2016) requires that a complete set of financial statements shall be prepared so as to give a true and fair view of the state of affairs of the company as at the financial year-end and shall comply with the relevant accounting standards prescribed by the AASBB. To comply with this provision, companies are required to use BAS 2020 Standards in full.

Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
All.
Are IFRS Accounting Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
Yes, in addition to domestic public companies, BAS 2020 is required for financial institutions and state-owned enterprises.
For instance, are IFRS Accounting Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
BAS 2020 is required.
For instance, are IFRS Accounting Standards required or permitted for companies whose securities do not trade in a public market?
BAS 2020 is required for state-owned entities, financial institutions, listed companies and unlisted companies with total assets of Nu. 100 million and wholly owned subsidiaries of such entities.
If the jurisdiction currently does NOT require or permit the use of IFRS Accounting Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Accounting Standards for such companies in the future?
Not applicable.

For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:

Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Accounting Standards in their consolidated financial statements?
There are no foreign companies listed on the Bhutan stock exchange.
If YES, are IFRS Accounting Standards REQUIRED or PERMITTED in such cases?
BAS 2020 accounting standards would be required.
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
All.

IFRS ENDORSEMENT

Which IFRS Accounting Standards are required or permitted for domestic companies?
The Companies Act of Bhutan 2016 specifies that all bodies corporate incorporated or registered by or under this Act, shall prepare a complete set of financial statements and shall comply with the relevant accounting standards prescribed by the AASBB. The accounting standards referred herein are BAS.
The auditor’s report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
BAS 2020
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Accounting Standards and the jurisdiction’s GAAP)?
No, only BAS 2020.
Are IFRS Accounting Standards incorporated into law or regulations?
No.
If yes, how does that process work?
Not applicable.
If no, how do IFRS Accounting Standards become a requirement in the jurisdiction?
The Companies Act of Bhutan 2016 requires that all bodies corporate, incorporated or registered by or under the Act, must present its financial statements in compliance with accounting standards (BAS) issued by AASBB.
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Accounting Standards (including Interpretations) in place?
No.
If yes, what is the process?
Not applicable.
If no, how do new or amended IFRS Accounting Standards become a requirement in the jurisdiction?
As and when the latest edition of BAS is revised, new or amended standards are incorporated for application.
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Accounting Standards and/or made any modifications to any IFRS Accounting Standards?
Yes, IFRS 17 Insurance Contracts is deferred until 1 January 2027.
If yes, what are the changes?
IFRS 17 Insurance Contracts is deferred until 1 January 2027.
Other comments regarding the use of IFRS Accounting Standards in the jurisdiction?
None.

TRANSLATION OF IFRS ACCOUNTING STANDARDS

Are IFRS Accounting Standards translated into the local language?
No.
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Accounting Standards?
Not applicable.

APPLICATION OF THE IFRS FOR SMEs ACCOUNTING STANDARD

Has the jurisdiction adopted the IFRS for SMEs Accounting Standard for at least some SMEs?
Yes, the 2012 version of the IFRS for SMEs Accounting Standard is adopted as BAS for SMEs, effective 1 January 2014. The 2025 version of the IFRS for SMEs Accounting Standard is expected to be adopted from 1 January 2027.
If no, is the adoption of the IFRS for SMEs Accounting Standard under consideration?
Not applicable.
Did the jurisdiction make any modifications to the IFRS for SMEs Accounting Standard?
No.
If the jurisdiction has made any modifications, what are those modifications?
Not applicable.
Which SMEs use the IFRS for SMEs Accounting Standard in the jurisdiction, and are they required or permitted to do so?
The AASBB requires the BAS for SMEs for all incorporated companies that are not listed.
For those SMEs that are not required to use the IFRS for SMEs Accounting Standard, what other accounting framework do they use?
Not applicable.
Other comments regarding use of the IFRS for SMEs Accounting Standard?
The AASBB will conduct training workshops on the BAS for SMEs.