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Cambodia Embraces International Financial Reporting Standards

The Cambodian Accounting and Auditing Regulator (ACAR) has adopted the International Financial Reporting Standards (IFRS) for Small and Medium-sized Entities (SMEs) and IFRS, issued by the International Accounting Standard Board (IASB). This move is expected to bring greater transparency and consistency to financial reporting in Cambodia.

Who Needs to Adopt CIFRS?

All enterprises, except non-profit organizations, public accountability entities, and specialized banks, are required to adopt Cambodian International Financial Reporting Standards (CIFRS) for SMEs or opt to use CIFRS if preferred.
Non-public accountability entities that meet certain audit requirements must also adopt CIFRS, while those that do not meet the requirements may still choose to adopt CIFRS.

Accounting and Auditing Requirements

The Law on Accounting and Auditing sets forth certain accounting requirements, including:

Preparation of financial statements within three months following the year-end
Maintenance of accounting records
Submission of financial statements to ACAR

Additionally, enterprises and not-for-profit entities are required to:

Maintain their accounting records for a period of ten years
The tax and accounting year is generally the calendar year, but may vary depending on specific circumstances

Audit Requirements

All enterprises and not-for-profit entities that meet certain criteria set out in Prakas No. 563SHV must submit their annual financial statements to be audited by an independent auditor registered with the Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA).

For Qualified Investment Projects (QIPs) registered with the Council for the Development of Cambodia, there is an obligation to submit annual financial statements to be audited by an independent auditor registered with KICPAA.

Penalties for Non-Compliance

Sub-Decree No. 79 ANKr.BK sets out a series of penalties for violations of the Law on Accounting and Auditing. First offenses are penalized with financial penalties, while repeat offenders face increasingly large financial and non-financial penalties.

Contact Information

For more information on accounting and auditing requirements in Cambodia, please contact:

[Your Company Name] [Address] [Phone Number] [Email Address]

About KPMG Cambodia

KPMG Cambodia Ltd. is a Cambodian single member private limited company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.