Adoption of International Financial Reporting Standards (IFRS) in Mali

Overview of OHADA and IFRS Adoption in Mali

Mali, a country in West Africa, has been working towards adopting International Financial Reporting Standards (IFRS) as part of its efforts to harmonize business laws within the Organization for the Harmonization of Business Law in Africa (OHADA). This report highlights the progress made by the Malian government in adopting IFRS, while also identifying areas that still require attention.

Key Developments and Challenges

OHADA Uniform Act on Accounting and Financial Information (AUDCIF)

• Became effective in January 2018 for individual accounts and January 2019 for consolidated and combined accounts
• Revised the SYSCOHADA accounting system, which was previously used by OHADA member states

IFRS Adoption

• Listed companies and those seeking financing in public capital markets must apply IFRS in their consolidated statements
• Other companies are permitted but not required to use IFRS

SYSCOHADA and SMEs

• Although revised, SYSCOHADA still differs from IFRS and is generally applied by small and medium-sized entities (SMEs)

ONECCA-MALI SMO Action Plan

• Developed an action plan to address areas of its Inspection and Discipline procedures that do not meet the best practices outlined in SMO 6
• Focuses on linking the inspection and discipline system with the QA review system, ensuring public interest considerations are taken into account, and regularly reviewing the procedures

Challenges Ahead

While progress has been made in adopting IFRS, there are still challenges to be addressed. These include:

• Linking the inspection and discipline system with the QA review system
• Ensuring public interest considerations are taken into account
• Regularly reviewing the procedures

The report concludes that while significant strides have been made in adopting IFRS, further work is needed to fully implement these standards and ensure their effective application across all sectors.