Madagascar

Member Organizations

Member Organization Associate

  Ordre des Experts Comptables et Financiers de Madagascar

Legal and Regulatory Environment

In progress

Adoption of International Standards

  • Quality Assurance

    In accordance with Article 70 of Ordinance No. 92-047 of November 5, 1992 (and subsequent amendments), the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is responsible for the establishment of a quality assurance (QA) review system.

    Through the European Union-funded Program of Support to Employment and Regional Integration (PROCOM), the OECFM began implementing QA reviews in January 2018. Thirteen firms have been subject to a first round of QA reviews in February 2018 and June 2018. OECFM expects to review another thirteen more by Q4 2019 and will complete the first cycle of reviews by 2021.

    The institute reports that its QA review procedures largely align with SMO 1 requirements, however, there are still some components that remain to be formalized and included within the bylaws prior to implementation. These include: the approach for selecting firms for QA review; linking the QA review results to the investigation and discipline mechanism; and regular reviews to assess the implementation of the system.

    Current Status: Partially Adopted

  • International Education Standards

    Initial professional and continuing professional development (IPD and CPD respectively) requirements are outlined in the Decree No.92-960 of November 11, 1992 for “Expert comptable et financier” (Chartered Accountants). In accordance with the decree, the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) determines education and practical experience requirements. Universities and the National Institute of Accounting Sciences and Business Administration deliver the IPD programs.

    IPD requirements stipulate that candidates for the title of “Expert comptable et financier” (Chartered Accountant) must hold a diploma from an OECFM-accredited higher education institution; complete an entrance exam on accounting, law, taxation, audit, and management; complete three years’ practical experience with an OECFM-member accounting or auditing firm; complete a written final exam on audit; and then present and defend a final thesis and dissertation. Individuals may then register with the OECFM and the institute maintains a list of registered Chartered Accountants and firms as the title is protected by law.

    Once a member of OECFM, individuals must fulfill 40 hours of CPD per year (120 over a three-year period), which meet the input-based approach outlined in revised IES 7 and 8.

    There are legal constraints in fully aligning national IPD and CPD requirements with the revised 2015 IES, but OECFM has initiated processes to facilitate convergence.

    The institute’s Education Board is working to compare national requirements to the IES to identify any changes that might need to be made but face challenges as there is no French translation of the IES.

    Current Status: Partially Adopted

  • International Standards on Auditing

    Under Ordinance No. 92-047 of November 5, 1992 (and subsequent amendments), the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is responsible for defining applicable auditing standards. Since 2009, the OECFM has adopted all ISA as issued by the IAASB and has signed an agreement with IFAC to use the French translation of the 2018 ISA Handbook.

    Current Status: Adopted

  • Code of Ethics for Professional Accountants

    The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is responsible for the adoption of ethical standards in accordance with Ordinance No. 92-047 of November 5, 1992 (and subsequent amendments). OECFM reports that it has adopted the 2018 International Code of Ethics.

    Current Status: Adopted

  • International Public Sector Accounting Standards

    The Conseil Supérieur de la Comptabilité (CSC) within the Ministry of Finance and Budget determines public sector accounting standards in accordance with Decree No. 89-161 of June 13, 1989 as amended by Decree No. 98-442 of June 18, 1998.

    Since 2006, government entities are required to apply the “Plan Comptable des Opérations Publiques” (PCOP). The PCOP is cash-basis and based on the 2004 version of IPSAS while also incorporating elements of the National Accounting Plan, Plan Comptable General (PCG) 2005, which is based on the 2004 version of IAS/IFRS (IFAC, CIPFA 2018).

    Current Status: Partially Adopted

  • Investigation and Discipline

    The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is responsible for the establishment and administration of an investigative and disciplinary (I&D) system in accordance with Ordinance No. 92-047 of November 5, 1992 (and subsequent amendments).

    The OECFM’s I&D procedures are outlined in the institute’s bylaws dated July 19, 2013. The institute has an Ethics & Discipline committee that will conduct investigations and report findings to the Disciplinary Chamber. The Disciplinary Chamber will issue any sanctions and members have the option of appealing. A representative from the government oversees the Disciplinary Chamber proceedings.

    The OECFM has indicated that its I&D procedures would benefit from further improvements to meet the SMO 6 requirements—for example, having non-accountants serve on the Disciplinary Chamber, formalizing the link with QA reviews, administrative processes, and public interest considerations such as publishing results and providing more information on how the public can bring a complaint.

    The OECFM is revising some articles within its bylaws to address and formalize some of these issues; however, the approval of the changes is subject to government approval procedures.

    Current Status: Partially Adopted

  • International Financial Reporting Standards

    The Conseil Supérieur de la Comptabilitié (CSC), which is based within the Ministry of Finance and Budget, is responsible for setting corporate accounting standards. Companies are required to prepare financial statements in accordance with the National Accounting Plan, Plan de Comptable General (PCG) 2005, which is based on the 2004 version of IFRS. Companies are permitted to apply full IFRS or the IFRS for small- and medium-sized entities (SMEs) if it can demonstrate that the resulting financial statements are an improvement over financial statements prepared under PGC-2005. However, a company that wants to comply with both IFRS and the PCG-2005 would prepare different two sets of financial statements.

    Banks and other financial institutions are required to apply the Plan Comptable des éstablissements de crédit (PCEC), while insurance companies must use Insurance Accounting Plan (PCAs) which are both also based on the 2004 IFRS.

    The PCG also outlines simplified accounting requirements for micro entities and allows such entities to maintain accounting records on a cash basis in accordance with the “Système Minimal de Trésorerie” (SMT).

    In May 2018, the International Monetary Fund (IMF) requested that the financial statements of the Central Bank agencies conform to the most recent version of the IFRS. The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) has been tasked with undertaking a study in collaboration with the CSC to determine the feasibility of adopting the most recent IFRS for these entities.

    Current Status: Not Adopted

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Methodology

Methodology
Last updated: 08/2020
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