Zambia
| 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 |
|
Permitted except for very small and micro-sized entities, which must use a national standard for micro and small entities. |
| The IFRS for SMEs Standard is under consideration |
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Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
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.
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?
If YES, are IFRS Standards REQUIRED or PERMITTED?
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
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?
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?
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnotes states that financial statements have been prepared in conformity with:
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)?
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
As indicated earlier, the adoption was done by a resolution at an Annual General Meeting of ZICA, which is the body designated under the Accountants Act of 2008 to establish accounting standards in Zambia. Thereafter, adoption is automatic as and when a new standard is issued. Since use of IFRS Standards is mandated on an ongoing basis, once a new or amended standard is issued by the IASB Board, it becomes a requirement for those companies using IFRS Standards in Zambia.
The legal authority to set financial reporting standards rests with the Institute as provided for in the Accountant Act of 2008. However, the current Companies Act is not aligned with the Accountants Act as it does not specify which accounting standards are to be used by companies when preparing financial statements.
The ZICA has concluded that it might be difficult for ZICA to legally enforce its mandate because the Companies Act does not specify which standards are to be used. To address this inconsistency, ZICA has made a submission to the consultants currently reviewing the Companies Act under the Ministry of Commerce, Trade and Industry to revise the Companies Act to clearly state that the financial statements of all companies in Zambia should be prepared in accordance with the financial reporting standards prescribed by ZICA.
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
If yes, what are the changes?
Other comments regarding the use of IFRS Standards in the jurisdiction?
Are IFRS Standards translated into the local language?
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?
Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
If the jurisdiction has made any modifications, what are those modifications?
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
All SMEs with annual turnover of less than K20 million (rebased) (approximately US$ 2 million) are required to use the Zambian Financial Reporting Standard for Micro and Small Entities (MSEs). However, if the entity actively trades in financial instruments (including shares, derivatives, and bonds) or if it is a real estate investment company, it must use the IFRS for SMEs Standard or full IFRS Standards.
All SMEs whose turnover is more than K20 million (rebased) per annum and are not listed on the stock exchange may opt to use full IFRS instead of the IFRS for SMEs Standard.
