|Extent of IFRS application||Status||Additional 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||Permitted.|
|The IFRS for SMEs Standard is under consideration|
The CSAAG sets standards under delegated authority from the Institute of Chartered Accountants of Sierra Leone (ICASL), the Audit Service of Sierra Leone (the public sector auditor), and the Ministry of Finance & Economic Development of the Republic of Sierra Leone.
The CSAAG made the following statement in Composite Financial Reporting Standard for Private & Public Not For Profit Entities (CS1):
“The aims of the Council for Standards of Accounting, Auditing, and Corporate and Institutional Governance include the establishment and improvement of standards of financial accounting and reporting for the benefit of users, preparers, and the auditors of financial information in all sectors of the Sierra Leone economy. To this end, CSAAG issues or endorses accounting standards based on the work of the International Accounting Standards Board (IASB) that are primarily applicable to general purpose financial statements. In particular industries or sectors, further guidance may be required in order to implement accounting standards efficiently and effectively. This guidance is issued by CSAAG in the form of Composite Financial Reporting Standards (CSs).”
The CSAAG believes that full IFRS Standards are appropriate for financial institutions and publicly traded entities. The CSAAG recognises that there will be differential reporting requirements for small and medium-sized entities (SMEs), not-for-profits, and the public sector.
IFRS Standards are required for:
Entities not required to use full IFRS Standards or the (national) public benefit entity standard (Composite Financial Reporting Standard for Public and Private Not For Profit Entities, CS1) are permitted to use the IFRS for SMEs Standard.
A mechanism for monitoring the application of IFRS Standards was implemented in 2014 and 2015.
The CSAAG may consider whether to change the auditor’s report to refer to ‘IFRSs as adopted by CSAAG’.