Rwanda
Extent of IFRS applicationStatusAdditional Information
IFRS Standards are required for domestic public companies IFRS Standards required for listed companies and financial institutions.
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 Required for some SMEs, permitted for others.
The IFRS for SMEs Standard is under consideration

Rwanda

RELEVANT JURISDICTIONAL AUTHORITY

Organisation
Institute of Certified Public Accountant of Rwanda [ICPAR]
Role of the organisation
The ICPAR is the official accounting standards-setting body in Rwanda. The policy of the ICPAR is to adopt IFRS exactly as issued by the IASB rather than set national accounting standards.

COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS

Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?

Yes.

Refer to The Rwanda Law Relating to Companies of 2009 (Companies Act), especially in Article 254 (which requires that all companies use International Accounting Standards), and the Law number 11/2008 of 06/05/2008 establishing the Institute of Certified Public Accountants of Rwanda (the ICPAR Law), which was published in the official Gazette of the Republic of Rwanda on 1 August 2008.

Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?

Yes.

See above.

What is the jurisdiction's status of adoption?
Rwanda has adopted IFRS Standards and the IFRS for SMEs Standard as issued by the Board.
Additional comments provided on the adoption status?
From 2008 the ICPAR Law made it explicit that, for public sector entities, the accounting standards shall be consistent with International Public Sector Accounting Standards (IPSAS), while in the private sector they shall be consistent with IFRS Standards. Further, the Law requires that auditing standards shall be consistent with the International Standards on Auditing (ISAs) issued by IFAC. In 2009 similar requirements were included in the Companies Act of Rwanda of 2009.
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.
Not applicable.

EXTENT OF IFRS APPLICATION

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?
Yes.
If YES, are IFRS Standards REQUIRED or PERMITTED?
Required.
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
All.
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
Yes.
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
IFRS Standards are required.
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
Companies with public accountability (banks and other financial institutions) must use full IFRS Standards. All other companies whose securities do not trade in a public market must use the IFRS for SMEs Standard.
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
Not applicable.

For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:

Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
Yes.
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Required.
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
All.

IFRS ENDORSEMENT

Which IFRS Standards are required or permitted for domestic companies?
IFRS Standards as issued by the Board.
The auditor's report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
IFRS Standards.
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
No.
Are IFRS Standards incorporated into law or regulations?
Yes. See above in the Commitment to Global Financial Reporting Standards section of this profile.
If yes, how does that process work?
See above in the Commitment to Global Financial Reporting Standards section of this profile.
If no, how do IFRS Standards become a requirement in the jurisdiction?
Not applicable.
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
No.
If yes, what is the process?
Not applicable.
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
The law requires IFRS Standards, so endorsement of new or amended IFRS Standards is not necessary.
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
No.
If yes, what are the changes?
Not applicable.
Other comments regarding the use of IFRS Standards in the jurisdiction?
None.

TRANSLATION OF IFRS STANDARDS

Are IFRS Standards translated into the local language?
No. IFRS Standards in English are used.
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
Not applicable.

APPLICATION OF THE IFRS FOR SMEs STANDARD

Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
Yes.
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Not applicable.
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
No.
If the jurisdiction has made any modifications, what are those modifications?
Not applicable.
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
Under the law, if an SME is a company then it is required to use the IFRS for SMEs Standard. SMEs that are not companies (such as proprietorships and partnerships) are permitted to use the IFRS for SMEs Standard.
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
Not applicable. There is no other accounting framework.
Other comments regarding use of the IFRS for SMEs Standard?
None.

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