|Extent of IFRS application||Status||Additional Information|
|IFRS Accounting Standards are required for domestic public companies||No stock exchange. IFRS Standards required for all companies other than micro-sized, and for all banks.|
|IFRS Accounting Standards are permitted but not required for domestic public companies|
|IFRS Accounting Standards are required or permitted for listings by foreign companies||No stock exchange.|
|The IFRS for SMEs Accounting Standard is required or permitted||No. National law requires all companies other than micro-sized to use full IFRS Standards.|
|The IFRS for SMEs Accounting Standard is under consideration||No.|
Profile last updated: 16 June 2016
Evidence of this support can be found in the Corporations and Limited Liability Companies Law of Afghanistan and the Afghanistan Banking Law, both of which have adopted IFRS Standards as issued by the International Accounting Standards Board (Board). Articles 28 and 101 of Da Afghanistan Bank (Central Bank) Law require the Central Bank to use IFRS Standards.https://www.afghanembassy-uae.com/en/investment-related-laws.html
Both the Law of Banking and the Da Afghanistan Law can be found under the Laws and Regulations of the ‘Legislation’ section of the Central Bank's website.
Article 54 of the Corporations and Limited Liability Companies Law of Afghanistan states:
ARTICLE 54: Preparation and Delivery of Financial Statements:
(1) Not less than 15 days prior to the Regular/Annual Meeting of the Shareholders, the Corporation shall deliver to all of the Shareholders entitled to attend such Meeting Financial Statements dated as of the last day of the fiscal year of the Corporation, which shall include the balance sheet dated as of the last day of the fiscal year and the profit and loss statement of the Corporation for the fiscal year. All Financial Statements shall include all operations of the company and shall comply in all material respects, with the applicable accounting standards set forth by the International Accounting Standards Board.
The Law of Banking requires all banks to follow accounting standards prescribed by regulation of the Central Bank. The Central Bank has prescribed the use of IFRS Standards.