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Chad’s Compliance with Financial Regulations Under Scrutiny

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A recent report has highlighted Chad’s compliance with financial regulations, revealing a mixed bag of adherence to international standards and practices.

IFRS Adoption

According to sources, Chad follows the International Financial Reporting Standards (IFRS) for all listed companies and those making public calls for capital. Additionally, companies with more than 100 shareholders are required to use IFRS Standards, even if their securities do not trade in a public market.

SMEs Exclusion

However, the country does not apply the IFRS standards for Small and Medium-sized Enterprises (SMEs). This has raised concerns among business experts who argue that it may put Chad’s SMEs at a disadvantage when competing with companies from other countries that follow stricter financial reporting guidelines.

OHADA Regulations

The Organisation for the Harmonisation of Business Law in Africa (OHADA) plays a crucial role in setting accounting standards and regulations in Chad. According to Article 8 of the Accounting Act, companies must publish a balance sheet, profit and loss account, statement of cash flows, and notes to the financial statements. All listed companies and those making public calls for capital are required to use IFRS standards for their financial statements.

Publication Requirements

The publication requirements for annual financial statements in Chad include:

  • Balance Sheet
  • Income Statement
  • Cash Flows statement
  • Notes to the financial statements

According to Article 23 of OHADA’s Uniform Act on the organization and harmonization of corporate accounting, these statements must be adopted no later than four months following the closing of the fiscal year.

ONPCT Oversight

The Ordre National des Professionnels Comptables du Tchad (ONPCT) is responsible for overseeing professional accountancy in Chad. According to Article 8 of OHADA’s Uniform Act on Commercial Companies, private limited companies that meet certain criteria are required to appoint at least one auditor. Public limited companies, on the other hand, have their financial statements supervised by one or more auditors.

Conclusion

While Chad has made significant strides in implementing international accounting standards, there is still room for improvement. The country’s compliance with financial regulations will continue to be a topic of discussion among business experts and regulatory bodies in the coming months.