Namibia Embraces International Financial Reporting Standards (IFRS)

A Commitment to Transparency and Consistency

Windhoek, Namibia - The Namibian government has made a significant commitment to adopt International Financial Reporting Standards (IFRS) for all domestic companies whose securities trade in public markets. According to the country’s Institute of Chartered Accountants (ICAN), all such companies are required to use IFRS standards in their consolidated financial statements.

Scope and Applicability

The adoption of IFRS is not limited to publicly traded companies. Entities that take deposits or loans from the public, offer shares to the public, have an essential public interest, or represent a public interest are also required to comply with IFRS standards. This move aims to promote transparency and consistency in financial reporting among businesses operating in Namibia.

Flexibility for Small and Medium-Sized Entities (SMEs)

The ICAN has adopted the International Financial Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs) for entities without public accountability. This allows them to choose between using full IFRS Standards or the IFRS for SMEs standard. This flexibility is intended to ease the burden on smaller companies and provide an alternative framework for their financial reporting needs.

Support and Training

The ICAN provides ongoing support and training to its members through annual continuing education workshops, ensuring that they are up-to-date with the latest developments in IFRS standards. The country’s accounting and audit firms are also actively promoting the adoption of IFRS standards among SMEs, with larger firms encouraging clients to report in accordance with the IFRS for SMEs standard. Smaller accounting firms continue to provide the option of reporting in terms of Statement NAC001, an alternative framework adopted by ICAN.

Conclusion

The commitment to adopt and implement IFRS standards demonstrates Namibia’s dedication to promoting transparency, consistency, and accountability in financial reporting among its businesses. The country’s decision will ensure that investors and stakeholders have access to reliable and comparable financial information, facilitating informed investment decisions and contributing to economic growth.