|Extent of IFRS application||Status||Additional Information|
|IFRS Accounting Standards are required for domestic public companies||No stock exchange. Financial institutions, concessionaries and companies limited by shares follow Macanese Financial Reporting Standards which consist of the 2015 IFRS Standards.|
|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.|
|The IFRS for SMEs Accounting Standard is under consideration||No.|
Profile last updated: 28 July 2022
As one of two Special Administrative Regions of China (the other being Hong Kong), Macao has its own legal system, including its own legal framework for developing accounting standards.
The CPC is the sole regulatory body of the accounting profession in Macao. Powers vested in the CPC include the issue of CPA license, the setting of Code of Ethics for CPAs, accounting and auditing standards, the supervision of CPA practice and the initiation of disciplinary proceedings on CPAs who violate the law or standards.
Macao operates a two-tier accounting standards system. The Accounting Standards include:
the General Financial Reporting Standards; and
the Financial Reporting Standards. The Financial Reporting Standards are applicable to financial institutions, concessionaries and companies limited by shares. Companies which do not fall into these categories and are required to have proper accounting records can choose to apply the General Financial Reporting Standards or the Financial Reporting Standards.
The Financial Reporting Standards consist of the 2015 IFRS Standards.
The General Financial Reporting Standards comprises 15 simplified cost-based accounting standards which can be easily applied by SMEs.
There is no stock exchange in Macao.
There is one authorised financial asset trading company operating in Macao carrying out bond issuance and trading services.
Issuers of bonds are required to include information about difference between the applicable GAAP to IFRS Standards for the purpose of public offering.
The Accounting Standards were promulgated through an administrative regulation. Article 6 of the administrative regulation authorizes the Secretary for Economy and Finance to make changes to the Accounting Standards, part of which is the Financial Reporting Standards.
The 20/2020 Law effective December 2020 gives the CPC the sole authority to issue standards (accounting, auditing, code of ethics, etc.) governing the accounting profession.