|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||IFRS Standards required for all listed companies (stock exchange currently inactive), financial institutions, and large private companies.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||Stock exchange is currently inactive.|
|The IFRS for SMEs Standard is required or permitted||No. National standards are currently required.|
|The IFRS for SMEs Standard is under consideration||Yes.|
Albania applied for European Union membership in April 2009. As an EU member, Albania would be required to comply with the regulation on the application of international accounting standards (IAS) adopted by the European Union in 2002.
Albania has adopted IFRS Standards.
The Accounting Law (2004) requires the following classes of companies to prepare their legal entity (separate company) and consolidated financial statements using IFRS Standards:
All other corporate sector entities must prepare their financial statements in accordance with Albanian National Accounting Standards drafted by the National Accounting Council of Albania (NACA) and approved by the Minister of Finance.
Because Albania has applied for membership in the European Union, Albania follows IFRS Standards as adopted by the European Union.
Link to Accounting Law (2004) in Albanian:
IFRS Standards as adopted by the European Union, which are IFRS Standards with some limited modifications such as the temporary 'carve-out' from IAS 39 Financial Instruments. However, the resulting financial statements of the majority of companies can still be in full compliance with IFRS Standards.
Yes. Currently the National Accounting Council of Albania (NACA), assisted by the World Bank and the IFRS Foundation, is working on a project to compare the IFRS for SMEs Standard to National Accounting Standards and to design a process to adopt the IFRS for SMEs in full. NACA expects the National Accounting Standards to remain in force for two to three years before the full adoption of the IFRS for SMEs Standard. The IFRS for SMEs Standard would be used by all entities not required to use full IFRS Standards.
The Accounting Law (2004) requires large unlisted entities (which may meet the International Accounting Standards Board’s definition of an SME) to prepare their separate company and consolidated financial statements using IFRS Standards. All other corporate sector entities must prepare their financial statements in accordance with Albanian National Accounting Standards drafted by the National Accounting Council (NAC) and approved by the Minister of Finance.
The IFRS for SMEs Standard is under consideration. At the same time, Albania has applied for membership in the European Union. This would require Albania to transpose the EU’s Accounting Directives into Albanian law.