The United States is the most notable country that does not follow International Financial Reporting Standards (IFRS), instead mandating the use of Generally Accepted Accounting Principles (US GAAP) for domestic companies. Other nations that maintain their own accounting standards, often distinct from IFRS, include China (uses CAS/ASBEs), Japan, India, and some others in specific, limited circumstances.
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.
The ASBE standards are significantly converged with the International Financial Reporting Standards (IFRS) and all listed companies in China must comply with the ASBEs for the preparation of their financial statements.
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.
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.
1 The International Financial Reporting Standards (IFRS) have been mandatory for preparing the con- solidated financial statements of capital market-oriented companies in Germany since fiscal years 2005 and 2007, respectively (see Regulation (EC) No.
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".
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.
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.
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).
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).
Egypt has not fully adopted IFRS, but its standards are designed to keep pace with international developments to enhance transparency and the business environment.
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 ( ...
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.
Italy is an EU Member State. Consequently, Italian companies listed in an EU/EEA securities market follow IFRSs since 2005.
UK legislation provides that all IFRSs that had been endorsed by the EU on or before the IP completion day became UK-adopted IFRS.
Publicly Traded Companies
Companies in Denmark that are publicly traded are required to prepare their annual reports in accordance with IFRS. This requirement ensures consistency and comparability for investors across different markets.
And after almost two decades (since 2012), the preparation of consolidated financial statements under IFRS in Russia has become a legal requirement, whereas individual financial statements are prepared in accordance with national accounting standards.
Portugal is an EU Member State. Consequently, Portuguese companies listed in an EU/EEA securities market follow IFRSs since 2005.
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.
In the realm of financial reporting, Spain adheres to a dual framework that includes both International Financial Reporting Standards (IFRS) and its own Generally Accepted Accounting Principles (GAAP), known as the “Plan General Contable” (PGC).
France is an EU Member State. Consequently, French companies listed in an EU/EEA securities market follow IFRSs since 2005.
Sweden is an EU Member State. Consequently, Swedish 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.
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.
Russians use various methods, including intermediaries, technology-based tools, QR codes, and crypto, to move money after being cut off from the SWIFT international financial messaging system and other traditional payment tools.