Afghanistan’s Businesses Face Tight Deadline for Financial Reporting Requirements
As the tax year draws to a close in Afghanistan, businesses are reminded of the importance of meeting financial reporting requirements. With only a few weeks left before the December 20th deadline, companies must ensure they comply with the country’s accounting regulations.
International Financial Reporting Standards (IFRS) Required for Most Companies
In Afghanistan, all companies except micro-sized enterprises and banks are required to use International Financial Reporting Standards (IFRS) for financial reporting purposes. The Supreme Audit Office is responsible for overseeing the implementation of these standards.
Required Financial Documents
The following financial documents must be submitted by law:
- Statement of financial position
- Statement of comprehensive income
- Changes in equity
- Cash flows
- Notes providing a summary of significant accounting policies and other explanatory information
Publication of Financial Statements
Companies are also obligated to publish their financial statements at least 15 days prior to their regular annual meeting with shareholders. This requirement is outlined in the Afghanistan Corporations and Limited Liability Companies Law.
Regulation of Financial Audit Firms and Professional Accountancy Services
The Certified Professional Accountants Afghanistan (CPA Afghanistan) regulates all financial audit firms and professional accountancy services. Only certified members of the organization are eligible to serve as external auditors for companies. CPA Afghanistan has been responsible for overseeing the certification and auditing process in the country since March 2018.
Consequences of Non-Compliance
Companies that fail to comply with these requirements risk facing penalties and fines. To avoid these consequences, businesses must prioritize financial reporting and take steps to ensure they are meeting all necessary obligations.
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