|Extent of IFRS application||Status||Additional Information|
|IFRS Accounting Standards are required for domestic public companies||No stock exchange. Banks and large taxable entities are required to use 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||The IFRS for SMEs Standard has been formally adopted. Implementation is determined by the Committee for Adoption and Implementation of International Standards (CAIIS).|
|The IFRS for SMEs Accounting Standard is under consideration|
Profile last updated: 20 February 2020
YACPA is the recognised association representing the accounting profession in Yemen. YACPA advises the Yemeni government on accounting and auditing standards.
The Audit and Review of Accounts Law No. 26 of 1999 regulates the audit and accounting profession in Yemen. The Ministry of Industry and Trade has assumed a regulatory role under this law via the Public Accountants Permit Committee (YACPA has 2 out of the 6 members required by law on this committee).
The Council of Ministers in its resolution No. 5 of 2019, based on the letter written by the Minister of Industry and Trade, approved the official adoption and implementation of:
IFRS Standards as issued by the International Accounting Standards Board; and
IFRS for SMEs Standard as issued by the International Accounting Standards Board.
The Ministry of Industry and Trade will form the "Committee of Adopting and Implementing the International Standards (CAIIS)", as indicated in this resolution, which will be headed by the Undersecretary of the Business Services Sector. The members of the CAIIS will represent the relevant stakeholders.The CAIIS will follow up on the adoption and implementation of all adopted standards, identify small and medium-sized enterprises and which of these are ready to apply the IFRS for SMEs Standard, and set the implementation start date.
As noted above, the Council of Ministers in its resolution No. 5 of 2019 approved adoption and implementation of IFRS Standards in the Republic of Yemen starting 1 January 2020.
Regulations issued by the Central Bank of Yemen and the Yemeni Tax Authority require IFRS Standards for companies regulated under their jurisdiction.
IFRS Standards are applied by the following entities:
Entities subject to public accountability represented by commercial banks, specialised banks and companies operating in the financial institutions sector and others that are required to submit their reports and financial statements to the Central Bank of Yemen;
All types of companies and commercial, industrial and service entities (classified as major taxpayers) that are required to submit their reports and financial statements to the Ministry of Industry and Trade and the Tax Authority;
Entities that are not subject to public accountability and would like to voluntarily adopt IFRS Standards.
The Central Bank requires all banking institutions to use IFRS Standards in their published financial statements.
Article 107 of the Tax By-Laws requires all companies classified as large and medium-sized to prepare financial statements using IFRS Standards.
IFRS Standards as issued by the Board are required.
All SMEs are permitted to use the IFRS for SMEs Standard.See the 'Relevant Jurisdictional Authority' section of this profile above.