Mongolia
| Extent of IFRS application | Status | Additional Information |
|---|---|---|
| IFRS Standards are required for domestic public companies |
|
Required. |
| IFRS Standards are permitted but not required for domestic public companies | ||
| IFRS Standards are required or permitted for listings by foreign companies |
|
Required. |
| The IFRS for SMEs Standard is required or permitted | No. Currently SMEs use either full IFRS Standards or the accounting regulation adopted by the Ministry of Finance. | |
| The IFRS for SMEs Standard is under consideration |
|
Yes, it is under consideration by the Ministry of Finance. |
Organisation
Two organisations participated in the survey:
- The Ministry of Finance of Mongolia (MOF)
- The Mongolian Institute of Certified Public Accountants (MONICPA)
Role of the organisation
Ministry of Finance: As stated in the Accounting Law of Mongolia, the Ministry of Finance is responsible for developing, setting, and implementing accounting standards. Moreover, the MOF, particularly the Accounting Policy Department, is in charge of supervising the implementation of IFRS Standards and International Public Sector Accounting Standards (IPSASs) for entities. In that role it develops and approves guidance, interpretations, and other related documents. In addition, the MOF translates and organises workshops for accountants to assist with the implementation of the International Accounting, Auditing and Valuation Standards.
Mongolian Institute of Certified Public Accountants (MonICPA): The MonICPA is the non-governmental organisation responsible by statute to approve and enforce the Code of Professional Ethics for professional accountants and auditors, establish and enforce auditing standards, conduct the CPA examination, and provide professional training. With respect to accounting standards, the MonICPA advises the Ministry of Finance about the adoption of IFRS Standards, but it is the Ministry of Finance that is the official accounting standard-setting body in Mongolia.
Website
Ministry of Finance: https://mof.gov.mn/en/
MonICPA: http://test.monicpa.mn/
Email contact
Ministry of Finance: boloroomof@yahoo.com
MonICPA: bumantsetseg@monicpa.mn
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 Standards as that single set of high quality global accounting standards?
Yes.
What is the jurisdiction's status of adoption?
Mongolia has already adopted IFRS Standards for all or some companies.
Additional comments provided on the adoption status?
The Accounting Law approved by the Parliament in 1993 requires all entities to prepare their financial reports in accordance with the International Accounting Standards. However, in practice, it has been only since late 2000 that listed companies began using IFRS Standards in full.
Most reports of audits done by international auditing firms state that public companies are preparing their financial statement in conformity with IFRS Standards. Most SMEs prepare the financial statements under the accounting regulation which was approved by the Minister of Finance instead of IFRS Standards. The IFRS for SMEs Standard has not been adopted in Mongolia.
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.
Not applicable.
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?
Yes.
If YES, are IFRS Standards REQUIRED or PERMITTED?
Required.
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
All.
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
Yes.
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
Required.
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
Permitted. Companies whose securities do not trade in a public market frequently follow the Accounting Regulation approved by the Minister of Finance.
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?
Yes.
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Required.
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
All.
Which IFRS Standards are required or permitted for domestic companies?
IFRS Standards as issued by the Board, ie standards and amendments are adopted/endorsed as and when issued by the Board.
The auditor's report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
IFRS Standards.
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)?
Yes, dual reporting (conformity with both IFRS Standards and the Mongolian Accounting Regulation) is common.
Are IFRS Standards incorporated into law or regulations?
Yes.
If yes, how does that process work?
The Accounting Law approved by the Parliament in 1993 requires all entities to prepare their financial reports in accordance with the International Accounting Standards.
If no, how do IFRS Standards become a requirement in the jurisdiction?
Not applicable.
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
No.
If yes, what is the process?
Not applicable.
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
New and amended IFRS Standards are automatically covered by the Accounting Law approved by the Parliament in 1993, which requires all entities to prepare their financial reports in accordance with the International Accounting Standards.
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
No.
If yes, what are the changes?
Not applicable.
Other comments regarding the use of IFRS Standards in the jurisdiction?
None.
Are IFRS Standards translated into the local language?
Translation of the 2011 IFRS Red Book (Part A) is in progress.
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?
IFRS Standards, the IFRS for SMEs Standard, IPSASs, and International Valuation Standards are translated according to the Accounting Law, the Ministry of Finance contracts with a professional non-governmental organisation (NGO) based on a bidding procedure.
To date, the Ministry of Finance has published translations of IFRS (in 1996, 2003, 2010, and 2011), the IFRS for SMEs Standard (the current version), and IPSASs (in 2003 and 2012). Due to capacity and funding constraints, the Ministry of Finance is not able to ensure that ongoing translation of the new and amended IFRS will always be done.
Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
No, Mongolia has not adopted the IFRS for SMEs Standard.
If no, is the adoption of the IFRS for SMEs Standard under consideration?
The Ministry of Finance is working on amendments to Accounting Law that will include classification of entities. The Ministry of Finance states that once the classification is established, they will legislate the adoption of the IFRS for SMEs Standard.
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
Not applicable.
If the jurisdiction has made any modifications, what are those modifications?
Not applicable.
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
Not applicable.
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
SMEs use either full IFRS Standards or the accounting regulation adopted by the Ministry of Finance.
Other comments regarding use of the IFRS for SMEs Standard?
The Ministry of Finance has stated that ‘In Mongolia, there are approximately 70,000 entities, of which between about 95% and 99% are small or medium sized entities. Hence adopting the IFRS for SMEs Standard is an important issue in our country.’
Listed companies are required to prepare financial statements (separate and consolidated) in accordance with IFRS. Other entities although permitted to use IFRS, usually follow the local Accounting Regulation. For a fuller description of the Mongolian reporting requirements, see the Mongolia jurisdictional profile.
General requirements for companies for-profit entities
Entities are required to file quarter financial statements to their respective Treasury Department (city, district or province) by the 20th of the first month following the quarter, and the annual financial statements by 10 February of the following year. Large entities are required to file the financial statements to the Ministry of Finance (MOF) with these same conditions.
Consolidated financial statements shall be submitted quarterly by the 25th of the month following the quarter, and the annual financial statements by 25 February of the following year to the corresponding financial institution.
The following companies are also subjected to submission of financial statements to the Financial Regulatory Commission of Mongolia (FRC):
- securities market brokers, dealers and underwriters must submit their financial report before 1 March and 1 August each year.
- non-banking financial institutions and savings and credit co-operatives need to submit their financial reports on a quarterly basis, which needs to be submitted in the first ten days of the month.
- insurance companies, the Commodity Stock Exchange, the Commodity Stock Exchange broker and dealer companies need to submit their financial reports in accordance with the Accounting Law.
Listed companies
Listed companies are required to release the semi-annual financial reports by 1 August and audited annual reports by 1 April of the following year through the company website and the Mongolian Stock Exchange website. These reports are also required to be filed to the FRC.
General requirement for companies
Entities are required to file electronically through the E-balance database, which is administrated by the MOF. Entities can send files via the website or the E-balance database or import them from MS Excel® files.
Listed companies
Listed companies are able to file electronically through the FINA system which is administrated by the FRC. G2G file sharing infrastructure between MOF and FRC is under negotiation.
Organisation
Ministry of Finance (MOF)
What type or format of structured electronic filing is required or permitted?
Filers are permitted to send data in XBRL format, which will then be processed by the E-balance datebase for receipt. As of Quarter 3 of 2014, out of 80,000 entities subject to financial reporting, only 8,000 (10 per cent) electronically submitted their financial statements using the XBRL filing.
What is the purpose of the electronic filing?
To facilitate electronic filing.
What documents are required to be filed to the electronic filing system?
N/A
Is the financial data provided in XBRL format publicly available?
No
Is the XBRL reporting system based on the IFRS Taxonomy issued by the IASB?
N/A
If no, what are the reasons for not using the IFRS Taxonomy?
At present, the XBRL reporting system is used only for the purpose of facilitating the electronic filing by filers.
Is the IFRS for SMEs filing adopted in the XBRL reporting system?
No
If no, are there any plans to implement the IFRS for SMEs filing in the future?
No plans at present
How is the XBRL financial statement reporting system set up?
N/A
What is (are) the intended purpose(s) of the local base taxonomy?
(a) to adopt the IFRS Taxonomy in a way that is consistent with locally endorsed IFRS and the endorsement process
(b) to restrict filer's ability or requirement to make extensions
(c) to take a back-up of the IFRS Taxonomy locally
(d) to include extension items for local legal and regulatory requirements
(e) to include extension items for reporting metadata
(f) the IFRS Taxonomy is adopted as it is. Australian extensions are added but the ASIC follows the architecture of the IFRS Taxonomy.
(g) N/A
Which IFRS Taxonomy files are used?
(a) taxonomy schemas
(b) extension schemas
(c) presentation linkbases
(d) definition linkbases
(e) calculation linkbases
(f) label linkbases
(g) reference linkbases
(h) formula linkbases
(j) N/A
Which part(s) of the IFRS (local) Taxonomy do filer's submissions import/refer to?
(a) taxonomy schemas
(b) extension schemas
(c) presentation linkbases
(d) definition linkbases
(e) calculation linkbases
(f) label linkbases
(g) reference linkbases
(h) formula linkbases
(i) all linkbases
(j) N/A
Are filers permitted to replace or override any aspects or specified features of the IFRS (local) Taxonomy?
N/A
If yes, which aspects and how does this work?
(a) presentation structure
(b) definition linkbase structure
(c) label
(d) dimensional definition linkbases, subject to change
(e) N/A
What is the scope or coverage of XBRL filing/tagging?
N/A
Are there any plans to extend the coverage of the XBRL filing/tagging in the future?
N/A
Which version of the IFRS Taxonomy is being used
N/A
If the taxonomy is to be updated to the 2014/2015 version, which of the following module(s) is (are) to be used?
(a) full IFRS is being used
(b) SME reporting
(c) Management Commentary
(d) N/A
Any guidelines or submission rules for filers?
N/A
Organisation
Financial Regulatory Commission of Mongolia (FRC)
What type or format of structured electronic filing is required or permitted?
The FINA system in the form of .XML/.XLS(X)/.FSOP and manual entry online. The FINA system is being developed to accommodate XBRL. The FRC plans to implement XBRL through the FINA system, depending on budget availability.
What is the purpose of the electronic filing?
- structured database;
- regulatory automation and efficiency (early warning system);
- Sectors of Strategic Importance Regulation; and
- reduction of bureaucratic burden.
What documents are required to be filed to the electronic filing system?
N/A
Is the financial data provided in XBRL format publicly available?
N/A
Is the XBRL reporting system based on the IFRS Taxonomy issued by the IASB?
N/A
If no, what are the reasons for not using the IFRS Taxonomy?
N/A
Is the IFRS for SMEs filing adopted in the XBRL reporting system?
No
If no, are there any plans to implement the IFRS for SMEs filing in the future?
No plans at present
How is the XBRL financial statement reporting system set up?
N/A
What is (are) the intended purpose(s) of the local base taxonomy?
(a) to adopt the IFRS Taxonomy in a way that is consistent with locally endorsed IFRS and the endorsement process
(b) to restrict filer's ability or requirement to make extensions
(c) to take a back-up of the IFRS Taxonomy locally
(d) to include extension items for local legal and regulatory requirements
(e) to include extension items for reporting metadata
(f) the IFRS Taxonomy is adopted as it is. Australian extensions are added but the ASIC follows the architecture of the IFRS Taxonomy.
(g) N/A
Which IFRS Taxonomy files are used?
(a) taxonomy schemas
(b) extension schemas
(c) presentation linkbases
(d) definition linkbases
(e) calculation linkbases
(f) label linkbases
(g) reference linkbases
(h) formula linkbases
(j) N/A
Which part(s) of the IFRS (local) Taxonomy do filer's submissions import/refer to?
(a) taxonomy schemas
(b) extension schemas
(c) presentation linkbases
(d) definition linkbases
(e) calculation linkbases
(f) label linkbases
(g) reference linkbases
(h) formula linkbases
(i) all linkbases
(j) N/A
Are filers permitted to replace or override any aspects or specified features of the IFRS (local) Taxonomy?
N/A
If yes, which aspects and how does this work?
(a) presentation structure
(b) definition linkbase structure
(c) label
(d) dimensional definition linkbases, subject to change
(e) N/A
What is the scope or coverage of XBRL filing/tagging?
N/A
Are there any plans to extend the coverage of the XBRL filing/tagging in the future?
N/A
Which version of the IFRS Taxonomy is being used
N/A
If the taxonomy is to be updated to the 2014/2015 version, which of the following module(s) is (are) to be used?
(a) full IFRS is being used
(b) SME reporting
(c) Management Commentary
(d) N/A
Any guidelines or submission rules for filers?
N/A
Do bodies in this jurisdiction use XBRL for purposes other than general purpose financial reports? (For example, taxation authorities, statistical purposes etc.)
No
Organisation
The Ministry of Finance of Mongolia (MOF)
Role of the organisation
As stated in the Accounting Law of Mongolia, the MOF is responsible for developing, setting, and implementing accounting Standards. Moreover, the MOF, particularly the Accounting Policy Department, is in charge of supervising the implementation of IFRS and IPSAS for entities. In that role it develops and approves guidance, interpretations and other related documents. In addition, the MOF translates and organises workshops for accountants to assist with the implementation of the International Accounting, Auditing and Valuation Standards.
Website
Email contact
Organisation
Financial Regulatory Commission of Mongolia (FRC)
