Financial Crime World

Myanmar Adopts Latest International Financial Reporting Standards (IFRS)

Introduction

The Myanmar Accountancy Council (MAC) has announced that it will adopt the latest versions of International Financial Reporting Standards (IFRS) for financial reporting periods beginning in or after the 2022-2023 fiscal year.

Compliance Requirements

All entities are required to comply with the IFRS standards, which have been adopted as Myanmar Financial Reporting Standards (MFRSs). The latest versions of the IFRS standards can be applied early, and the auditor’s report will indicate whether the financial statements have been prepared in conformity with MFRS or IFRS.

Application for Small and Medium-sized Entities (SMEs)

The MAC has also announced that it will permit the direct application of the latest versions of the IFRS for SMEs Standard. This means that SMEs can choose to adopt the latest version of the standard, which is identical to the 2009 version of the IFRS for SMEs Standard.

Adoption Process

The adoption of IFRS standards in Myanmar follows a formal process, which includes consideration by the MAC and stakeholder consultation. The MAC has also eliminated any accounting policy options permitted by IFRS standards and made no modifications to any IFRS standards.

Language Requirements

In addition, the MAC has announced that it will not translate IFRS standards into the local language, but rather require entities to apply the English-language versions of the standards.

Benefits and Significance

The adoption of IFRS standards in Myanmar is expected to improve transparency and comparability of financial statements between companies operating in different jurisdictions. It also reflects the country’s commitment to adopting international best practices in accounting and financial reporting.

Key Takeaways:

  • The MAC has adopted the latest versions of IFRS for financial reporting periods beginning in or after the 2022-2023 fiscal year.
  • All entities are required to comply with MFRSs, which are identical to IFRS standards.
  • SMEs can choose to adopt the latest version of the IFRS for SMEs Standard.
  • The MAC will not translate IFRS standards into local languages, and entities must apply English-language versions.
  • The adoption of IFRS standards is expected to improve transparency and comparability of financial statements.