|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||No. Currently SMEs use either full IFRS Standards or the accounting regulation adopted by the Ministry of Finance.|
|The IFRS for SMEs Standard is under consideration||Yes, it is under consideration by the Ministry of Finance.|
Two organisations participated in the survey:
Ministry of Finance: As stated in the Accounting Law of Mongolia, the Ministry of Finance is responsible for developing, setting, and implementing accounting standards. Moreover, the MOF, particularly the Accounting Policy Department, is in charge of supervising the implementation of IFRS Standards and International Public Sector Accounting Standards (IPSASs) for entities. In that role it develops and approves guidance, interpretations, and other related documents. In addition, the MOF translates and organises workshops for accountants to assist with the implementation of the International Accounting, Auditing and Valuation Standards.
Mongolian Institute of Certified Public Accountants (MonICPA): The MonICPA is the non-governmental organisation responsible by statute to approve and enforce the Code of Professional Ethics for professional accountants and auditors, establish and enforce auditing standards, conduct the CPA examination, and provide professional training. With respect to accounting standards, the MonICPA advises the Ministry of Finance about the adoption of IFRS Standards, but it is the Ministry of Finance that is the official accounting standard-setting body in Mongolia.
The Accounting Law approved by the Parliament in 1993 requires all entities to prepare their financial reports in accordance with the International Accounting Standards. However, in practice, it has been only since late 2000 that listed companies began using IFRS Standards in full.
Most reports of audits done by international auditing firms state that public companies are preparing their financial statement in conformity with IFRS Standards. Most SMEs prepare the financial statements under the accounting regulation which was approved by the Minister of Finance instead of IFRS Standards. The IFRS for SMEs Standard has not been adopted in Mongolia.
IFRS Standards, the IFRS for SMEs Standard, IPSASs, and International Valuation Standards are translated according to the Accounting Law, the Ministry of Finance contracts with a professional non-governmental organisation (NGO) based on a bidding procedure.
To date, the Ministry of Finance has published translations of IFRS (in 1996, 2003, 2010, and 2011), the IFRS for SMEs Standard (the current version), and IPSASs (in 2003 and 2012). Due to capacity and funding constraints, the Ministry of Finance is not able to ensure that ongoing translation of the new and amended IFRS will always be done.