|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||IFRS Standards required for listed companies, financial institutions, and government-owned companies.|
|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||SMEs must use full IFRS Standards or Swaziland national standards (when developed).|
|The IFRS for SMEs Standard is under consideration|
Role of the organisation
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
The Companies Act 2009 (alternate link) states that, for all companies, “the annual financial statements of a company shall be in conformity with Swaziland and International Financial Reporting Standards”.
The World Bank’s November 2012 ROSC Report on Swaziland reaffirms the requirement to comply with IFRS Standards.
The Swaziland Institute of Accountants’ five-year strategic plan, adopted in 2012, states that adoption of IFRS is a strategic goal of the SIA. The strategic plan states that the Institute should:
- “Develop a plan for the adoption of IFRS….”
- “Put mechanisms in place to monitor and enforcement of compliance (or to deal with non-compliance)”.
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?
Chapter XI Section 247 of the Companies Act 2009 requires application of IFRS Standards . Further, the SIA has approved the adoption of IFRS Standards and the IFRS for SMEs Standard, as well as International Standards on Auditing.
As noted above, the World Bank’s November 2012 ROSC Report on Swaziland states: “The Companies Act 2009 requires financial statements to comply with IFRS and ‘Swaziland Financial Reporting Standards’ (although these standards do not exist) and be in accordance with the provisions of Schedule 3 of the Companies Act. Thus, companies are required to identify any gaps between the IFRS and Companies Act disclosure requirements and report on both in the auditor’s report — an onerous requirement. The requirement for all companies, except the exempt private companies, to apply IFRS is difficult and costly for small and medium-size companies. Some legislation and regulations refer to non-existent accounting standards (eg generally recognized accounting practice).”
The ROSC Report goes on to say: “The Companies Act allows any private company to elect to dispense from presenting annual financial statements and reports before a general meeting in the current and subsequent years. This is a significant weakness in the financial reporting statutory framework as some of the private companies may be a public interest enterprise, which should be required to present financial statements before the annual general meeting for the benefit of stakeholders.”
Although Section 247 of the Companies Act 2009 requires application of IFRS Standards, the jurisdiction acknowledges that IFRS Standards are often not followed, and there are no sanctions for companies not applying IFRS Standards.
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?
The Companies Act requires IFRS Standards for the following classes of companies even if their securities do not trade in a public market:
- Public companies
- Public enterprises
- Banking institutions
- Non-banking financial institutions
- Insurance companies
- Retirement funds
Under the Act, other classes of companies whose securities do not trade in a public market may elect not to publish financial statements. If they do publish financial statements, the Companies Act permits IFRS Standards. Alternatively, the SIA approved compliance with the IFRS for SMEs Standard effective in 2010.