While over 140 jurisdictions require IFRS for domestic listed companies, the United States is the most notable country that does not use IFRS, adhering instead to US GAAP. Other countries that do not fully adopt IFRS for domestic, public companies include China, India, Japan, and parts of the Middle East, which often use their own local GAAP or converged standards.
The U.S., China, Egypt, Bolivia, Guinea-Bissau, Macao and Niger don't allow their domestic publicly traded companies to use International Financial Reporting Standards.
No, the use of IFRS Standards is not permitted for domestic companies. All Chinese companies whose securities trade in a public market in China are required to use Chinese Accounting Standards for Business Enterprises (ASBEs) for financial reporting within mainland China.
Regulation (EU) 2023/1803 codifies IFRS accounting standards as adopted by the EU. Every time a new standard is endorsed at EU level, the Commission publishes an amending regulation which is directly applicable in all EU countries.
“If we adopt IFRS universally, most companies would follow the same standard,” Koo says. “This widespread influence would be so huge in that case that it might cause conflict or tension about the standard-setting process. Having Independent processes can allow countries to have some autonomy, which can be beneficial.”
Declaring (and rightfully so) that their main goal is to protect US investors' interests, the SEC notes that IFRS lacks consistent application, allows too much leeway with judgment, and is underdeveloped in many specific areas, for which the US GAAP has detailed and accepted guidance and established practice ( ...
Companies in Switzerland also have the freedom to choose from various accounting standards, particularly IFRS, US GAAP and Swiss GAAP FER. The selection of the appropriate accounting standard is a strategic decision, which needs to take into account the wider implications beyond a pure cost-benefit consideration.
Since 2012, IFRS have increasingly been adopted in Russia, and they are mandatory for consolidated financial statements, while standalone financial statements must be prepared using RAS. IFRS statements are also required for domestic public companies. IFRS are generally deemed more relevant to the needs of investors.
In India, local accounting standards are converged with IFRS instead of the adoption of IFRS word to word. The responsibility of convergence with IFRS is given to the local government, accounting, and regulatory bodies like ICAI.
Germany is an EU Member State. Consequently, German companies listed in an EU/EEA securities market follow IFRSs since 2005. The European Commission (EC) periodically issues a document which summarises the use of options of the IAS Regulation by European Union Member States.
Voluntary adoption of IFRSs by public companies
Since 2010, eligible listed companies in Japan have been permitted to use IFRSs as designated by the Financial Services Agency of Japan (FSA) in their consolidated financial statements, in lieu of Japanese GAAP.
UK accounting giant PwC faces six-month China ban
The Big Four accountancy firm is also being fined more than $62m (£47m) after Chinese authorities said it had helped cover up fraud at Evergrande. The real estate firm collapsed in January under a mountain of debt.
The accounting standards of Hong Kong are known as the Hong Kong Financial Reporting Standards (HKFRS), which have been fully converged with the International Financial Reporting Standards (IFRS).
It is well-known that the UAE has not only adopted the IFRS standards, but it has made it mandatory for companies or businesses to prepare financial statements with IFRS. Obviously, this big change in the financial and business sector must be in good alignment with the UAE's laws and regulations to be adopted rapidly.
International Financial Reporting Standards (IFRS) form the backbone of financial reporting in Australia. Since their adoption in 2005, IFRS has shaped how businesses communicate financial information, ensuring consistency and transparency.
Italy is an EU Member State. Consequently, Italian companies listed in an EU/EEA securities market follow IFRSs since 2005.
IFRS is followed in over 140 countries, and the system is more principle-based as it gives businesses flexibility in applying standards. GAAP on the other hand, is used almost exclusively in the United States and is governed by the Financial Accounting Standards Board (FASB).
IFRS Accounting Standards as adopted by the UK from 1 January 2021 were the extant IFRS Accounting Standards as adopted by the EU immediately beforehand, but may diverge over time; the timing of UK endorsement of standards may also be different from EU endorsement.
IFRS 9 replaced IAS 39 in January 2018 because it was too complex, inconsistent, and impractical in a modern financial world. Accountants, regulators, and financial institutions often call IAS 39 one of the most confusing standards ever written.
Swiss GAAP permits the use of IFRS or Swiss accounting standards for pension and other post-employment benefit plans, with the election made on a plan-by-plan basis.
SOCPA Adopts IFRS 19 for Implementation in Saudi Arabia. The Saudi Organization for Chartered and Professional Accountants (SOCPA), represented by its Accounting Standards Board, has adopted the International Accounting Standards Board's IFRS 19 for implementation in Saudi Arabia.
The introduction of mandatory reporting in accordance with IFRS in Ukraine began with amending the Law of Ukraine dated 16 July 1999 No. 996-XIV "On Accounting and Financial Reporting in Ukraine".
Since 2005 the IASB and ASBJ have been working together to achieve convergence of IFRS standards and J-GAAP. This work was formalized in 2007 with the “Tokyo Agreement”. The Japanese government also promoted voluntary adoption of IFRS as part of its 2018 Growth Strategy Japan.
Norwegian listed companies prepare consolidated accounts according to International Financial Reporting Standards (IFRS), while banks, insurance undertakings and other credit institutions must prepare consolidated and individual accounts according to IFRS (some adaptations apply to the individual accounts).
Singapore has been following a path of converging Singapore Financial Reporting Standards (SFRS) with IFRS for Singapore listed companies for many years and Singapore has adopted substantially all IFRSs issued by the IASB as SFRSs, albeit at times with different effective dates and transition requirements.