International financial reporting standards (IFRS) should be adopted for accounting years beginning on or after 1 January 2023, for the consolidated financial statements of public interest entities (financial institutions, insurance and reinsurance companies and listed companies) according to a decision of the National Accounting Council (CNC).
IFRS are international financial reporting standards intended to standardise the presentation of accounting data internationally. Since 2005, they have replaced the standards labelled IAS (International Accounting Standards).
Financial institutions and companies concerned are, however, encouraged to adopt these standards for the financial years preceding the year 2023, according to a report by Tunisia Tribune.
The CNC meeting, held on 31 December 2021, examined the draft revision of the accounting standard relating to tangible fixed assets as well as the proposals made for the amendment of the law relating to the accounting system of companies and the progress of the project.
The minister of finance, who chaired the meeting, underlined the importance of taking advantage of the debates held within the framework of the CNC’s work and of strengthening interaction with all stakeholders, in particular accountants to ensure the credibility of financial information and better support for companies.
The 1 January 2023 date represents a delay in the implementation of IFRS in Tunisia. In September 2018, the CNC decided on the obligation to adopt IFRS standards concerning the consolidated financial statements of public interest entities (financial institutions, insurance and reinsurance companies and listed companies) for the financial year ended 31 December 2021.
One obstacle to the implementation of IFRS in the country is that companies prepare their financial statements first in accordance with tax rules which differ from IFRS. Furthermore, the costs of adoption and implementation of IFRS and the costs related to their enforcement pose economic hurdles. M