Namibia
| 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 |
|
Permitted. |
| The IFRS for SMEs Standard is under consideration |
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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.
In 2005 ICAN adopted IFRS Standards by issuing Circular 1/2005 Status of Statements of Namibian Generally Accepted Accounting Practice (GAAP) in Relation to International Financial Reporting Standards (IFRS). That circular sets out the background to the adoption of IFRS Standards effective for financial reporting periods commencing on or after 1 January 2005. Given conditions in Namibia at the time the circular provided for a three-year transition period to limit the impact of compliance with IFRS 1 First-time Adoption of International Financial Reporting Standards on entities other than listed entities, all of which were required to comply with full IFRS Standards including IFRS 1.
Simultaneously to and co-ordinated with issuance of Circular 1/2005, an IFRS compliance requirement for listed entities was added into the general listing requirements of the Namibian Stock Exchange.
Circular 1/2005 may be downloaded here. Click ‘Downloads’, then ‘Circulars’.
Additionally:
- Recognition of the commitment to IFRS Standards in Namibia is reflected in that the Bank of Namibia (the central bank) has adopted IFRS Standards even though no accounting framework is prescribed in the Bank of Namibia Act.
- Similarly the Social Security Commission has adopted IFRS Standards for reporting purposes.
- These are two significant state-owned entities, and both use IFRS Standards for financial reporting purposes.
What is the jurisdiction's status of adoption?
Namibia has adopted IFRS Standards (see above) and the IFRS for SMEs Standard.
The IFRS for SMEs Standard was adopted by Circular 2010/02 Adoption of IFRS for SMEs as a Namibian Generally Accepted Accounting Framework and Specimen Audit Report.
Circular 2010/02 may be downloaded here. Click ‘Downloads’, then ‘Circulars’.
Additional comments provided on the adoption status?
None.
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?
IFRS Standards are required for all publicly accountable entities and entities that represent the public interest, whether or not their securities are publicly traded. Such entities include:
- An entity that takes deposits or loans from the public.
- An entity that offers its shares to the public.
- An entity that has an essential public responsibility or provides essential public service.
- An entity that holds assets in a fiduciary capacity for a broad group of outsiders, such as a bank, insurance companies, securities broker-dealer, pension fund, mutual fund or investment banking entity.
- An entity that is economically significant on the basis of criteria such as total assets, total income, number of employees, degree of market dominance and nature and extent of external borrowings.
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?
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?
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?
When ICAN adopted full IFRS Standards in 2005, ICAN recognised that full IFRS Standards could be burdensome to many of private companies that operate in Namibia’s SME economy. At the time there was no global SME standard. Consequently, ICAN adopted the Eastern Central and Southern African Federation of Accountants Guide on Financial Reporting for Small and Medium-Sized Entities as a Namibian statement of Generally Accepted Accounting Practice (Circular 1/2006, Statement NAC001). That statement included guidance on determining whether an entity would qualify as an SME. An SME could not be publicly accountable entity nor be considered as representing public interest.
In 2010, ICAN adopted the IFRS for SMEs Standard by Circular 2010/02 Adoption of IFRS for SMEs as a Namibian Generally Accepted Accounting Framework and Specimen Audit Report.
Circular 2010/02 may be downloaded here. Click ‘Downloads’, then ‘Circulars’.
Therefore, currently, entities without public accountability and that do not represent the public interest may choose:
- Full IFRS Standards.
- The IFRS for SMEs Standard.
- The Eastern Central and Southern African Federation of Accountants Guide on Financial Reporting for Small and Medium-Sized Entities adopted as NAC001.
The Technical Committee of ICAN is currently reviewing the option in Circular 1/2006 for entities without public accountability to use NAC001.
