Madagascar
| Extent of IFRS application | Status | Additional Information |
|---|---|---|
| IFRS Standards are required for domestic public companies | No stock exchange. | |
| IFRS Standards are permitted but not required for domestic public companies |
|
No stock exchange. IFRS Standards permitted for financial institutions. |
| IFRS Standards are required or permitted for listings by foreign companies | No stock exchange. | |
| The IFRS for SMEs Standard is required or permitted |
|
IFRS for SMEs has not been adopted. However, SMEs are permitted to use it. |
| The IFRS for SMEs Standard is under consideration |
|
Formal adoption of the IFRS for SMEs is under consideration. |
Organisation
Conseil Supérieur de la Comptabilité (CSC) [Higher Council of Accounting]
Ordre des Experts Comptables et Financiers de Madagascar (OECFM) [Society of Accounting and Finance Experts of Madagascar]
Role of the organisation
Website
CSC: www.csc.mg/index.php
OECFM: http://www.oecfm.org/
Email contact
CSC: mcsc@csc.mg
OECFM: oecfm@moov.mg and exa@moov.mg
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
Yes.
The OECFM’s commitment to IFRS Standards is set out in its August 2013 “Action Plan” submitted to the International Federation of Accountants (IFAC) as part of IFAC’s member body compliance assessment programme:
www.ifac.org/sites/default/files/compliance-assessment/part_3/201308 Madagascar OECFM V2.pdf
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
The existing Madagascar accounting standards are known as The National Accounting Plan “PCG 2005-Consistent IAS/IFRS”. The plan was developed by the CSC in 2005 (and there are plans of updating it if financing from the World Bank is obtained). The CSC has stated that in developing the plan it tried to “base those standards on IFRS” as published in 2004.
PGC-2005 allows any entity to choose to apply full IFRS Standards or the IFRS for SMEs Standard, provided that it can demonstrate that the resulting financial statements are an improvement over financial statements prepared under PGC-2005.
In practice, in order to avoid having problems with the fiscal authority, entities (and in particular subsidiaries of foreign entities) prefer having two sets of financial statements prepared:
(a) one set of statements compliant with PCG 2005, which is used for tax purposes and other local purposes, and
(b) a second set compliant with IFRS Standards (or sometimes US GAAP), which is incorporated in the consolidated financial statements of the parent company.
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?
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS 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 Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
If yes, what are the changes?
Other comments regarding the use of IFRS Standards in the jurisdiction?
Are IFRS Standards translated into the local language?
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Yes.
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
If the jurisdiction has made any modifications, what are those modifications?
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
SMEs use the national accounting standards known as PGC-2005. But PGC permits any entity to choose to apply full IFRS Standards or the IFRS for SMEs Standard. So SMEs have the choice of PGC-2005, full IFRS Standards, or the IFRS for SMEs Standard.
Very small-sized entities – those with annual turnover less than MGA 20 million (around Euros 5,500) – keep their accounting records according to the minimum system of cash (Système Minimal de Trésorerie SMT), a system similar to a cash basis of accounting, and the financial statements are simplified.
