Financial Crime World

Mauritius Financial Reporting Requirements: A Comprehensive Overview

In a bid to enhance transparency and accountability in corporate reporting, Mauritius has introduced a new financial reporting framework that caters to the diverse needs of companies operating in the country.

Key Features of the Framework

The framework, enacted through Finance Bill 2009 and amendments to the Companies Act 2001, sets out specific requirements for listed and state-owned enterprises, as well as private companies. The key features include:

Listed Companies

  • Required to adopt full International Financial Reporting Standards (IFRS)
  • Must prepare financial statements in accordance with IFRS

State-Owned Enterprises

  • Those with revenue exceeding MUR 50 million (approximately USD 1.7 million) are bound by the same standards as listed companies
  • Smaller state-owned enterprises have the option to choose between:
    • Full IFRS
    • IFRS for Small and Medium-sized Entities (SMEs)
  • Remaining state-owned enterprises with revenue below MUR 50 million can opt for:
    • IFRS for SMEs
    • Financial Reporting Framework and Standards issued under section 72 of the Financial Reporting Act

Private Companies

  • Those not state-owned and with a turnover exceeding MUR 50 million must adopt full IFRS
  • Those with a lower turnover are exempt from preparing financial statements but must submit a schedule of financial information, including:
    • Summarised balance sheet
    • Profit or loss account without notes

Additional Options for Private Companies

  • Private companies that do not qualify as public interest entities under the Financial Reporting Act may choose to apply IFRS for SMEs

Objectives of the Framework

The new framework aims to:

  • Promote consistency in financial reporting
  • Reduce regulatory burdens on companies
  • Enhance investor confidence in the Mauritian market

By introducing this comprehensive framework, Mauritius seeks to enhance transparency and accountability in corporate reporting, providing investors with a clearer understanding of company performance and facilitating informed decision-making.