|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||No stock exchange. Financial institutions are required to use IFRS Standards.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||No stock exchange.|
|The IFRS for SMEs Standard is required or permitted||Permitted.|
|The IFRS for SMEs Standard is under consideration|
Role of the organisation
The LICPA is the official accounting standards-setting body in Liberia. The LICPA was established by Legislature of Liberia in the Liberian Institute of Certified Public Accountants Act (LICPA Act) of 3 June 2011 to regulate the accounting profession in Liberia. The LICPA is empowered to set standards, license accounting and assurance practitioners, build capacity and do all things appertaining to regulating the accounting and assurance professions aimed at building a strong and vibrant public accounting sector in the country. With respect to accounting standards, Section 8 of the LICPA Act provides:
‘In furtherance of its objectives, the Institute is… authorized to… regulate the practice of accounting… in Liberia by establishing and enforcing accounting, auditing and other assurance engagement standards in Liberia.’
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
In July 2015, the Governing Council of the LICPA issued Regulation 1: Professional Standards and Related Practice Statements that, among other things, adopted IFRS Standards as the accounting framework in Liberia effective 31 December 2018, with earlier application encouraged. (The effective date of Regulation 1 was initially 31 December 2016, but the LICPA subsequently amended that to 31 December 2018.)
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
The LICPA began the process of adopting IFRS Standards in Liberia prior to 2014, and its plan was to complete the process and announce adoption of IFRS Standards in 2014. However, this was delayed due to the outbreak of Ebola. After control of the Ebola outbreak, in July 2015 LICPA issued Regulation 1: Professional Standards and Related Practice Statements formally adopting and the following standards and pronouncements:
• IFRS Standards, including both full IFRS Standards and the IFRS for SMEs Standard.
• International Standards on Auditing.
• International Education Standards for Accountants.
• The IFAC Code of Ethics for Professional Accountants.
The IFRS Standards are effective 31 December 2018, with earlier application encouraged. (The effective date of Regulation 1 was initially 31 December 2016, but the LICPA subsequently amended that to 31 December 2018.)
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
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 Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED?
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
Yes. Financial Institutions Act of 1999 requires that ‘every financial institution shall- keep its business records and books in accordance with internationally accepted accounting principles’. Consistent with that Act, the Central Bank of Liberia mandated that all commercial banks operating in Liberia must prepare their financial statements using IFRS Standards effective 2013.
LICPA Regulation 1 specifies that the following public interest entities must use full IFRS Standards effective 31 December 2018, with earlier application encouraged:
- banks of any and every kind (micro, commercial, investment, etc.);
- credit unions;
- insurance companies;
- mutual funds;
- dealers of any and every kind (including brokers) in financial securities; and
- any legal person that is in the process of having its equity or debt instruments listed for trading on any public exchange located anywhere, whether within or outside of Liberia; along with any and all other public interest deposit-taking legal entities;
provided that a susu club or credit union with total assets value than one million United States dollars (or its Liberian dollar equivalent) may elect to use the IFRS for SMEs Standard. All other companies whose securities do not trade in a public market are required by LICPA Regulation 1 to use either full IFRS Standards or the IFRS for SMEs Standard effective 31 December 2018, with earlier application encouraged.