Act No. 2003–036 of January 30, 2004, On Commercial Companies, outlines accounting, auditing, and financial reporting requirements for all companies in Madagascar. All companies are required to prepare their financial...

Act No. 2003–036 of January 30, 2004, On Commercial Companies, outlines accounting, auditing, and financial reporting requirements for all companies in Madagascar. All companies are required to prepare their financial statements in accordance with the Plan Comptable General (PCG) 2005 issued by the standard-setting body, Conseil Supérieur de la Comptabilité (CSC). The PCG, which was approved by Ministerial Decree No. 2004–272 of February 18, 2004, is based on the 2004 version of IFRS and permits companies to use IFRS or IFRS for SMEs.

The PCG also outlines simplified accounting requirements for micro entities (defined as those having annual turnover of less than MGA 20 million (approx. €7,200), and allows such entities to maintain accounting records on a cash basis in accordance with the Système Minimal de Trésorerie.

The Commission de Supervision Bancaire et Financière (CSBF) sets financial reporting requirements for banks in accordance with Banking Law No.95–030 of February 22, 1996. Banks and financial institutions are required to apply the accounting standards in the Plan Comptable des établissements de crédit, which was approved by Decree 20469/20014 of October 27, 2004. Under the Law on Insurance Activities, the Ministry of Finance and Budget is responsible for issuing accounting rules for insurance companies, and the rules are stipulated in the Insurance Accounting Plan based on Decree 2007–152 of December 19, 2007.

Incorporated and limited liability companies are required to have their financial statements audited based on size and turnover criteria as defined in the Act No. 2003–036 On Commercial Companies. The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) sets auditing standards in accordance with Article 70 of Ordinance No. 92–047 November 5, 1992, On the Organization of the Profession of Chartered Accountant and Finance (and subsequent amendments). The OECFM adopted the 2009 version of ISA for the performance of financial statement audits. The CSBF requires the appointment of at least two auditors for audits of banks, and reserves the right to approve the auditors. Auditors of banks and insurance companies are required to apply standards issued by the OECFM.

Ordinance No. 92–047 of November 5, 1992, On the Organization of the Profession of Chartered Accountant and Finance, which was amended by Law No. 96–019 of September 4, 1996, and Law No. 2001–023 of January 2...

Ordinance No. 92–047 of November 5, 1992, On the Organization of the Profession of Chartered Accountant and Finance, which was amended by Law No. 96–019 of September 4, 1996, and Law No. 2001–023 of January 2, 2002, outline the functions of the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) with respect to the regulation of the accountancy profession. The OECFM’s responsibilities include (i) to ensure members’ compliance with ethical standards, rules of professional conduct, and standards; (ii) to organize and monitor the education and training of the accountancy profession; (iii) to monitor the performance of Chartered Accountants; (iv) to administer an investigation and disciplinary system to address members’ breaches of professional conduct; (v) to set ethical and professional standards; and (vi) to represent and defend the interest of the profession, nationally and internationally. In addition, the OECFM acts as a licensing authority for members of the profession and maintains a list of auditors and audit firms. The designation of Chartered Accountant and Finance is protected under the law.

Law No. 2001–023 of January 2, 2002 grants the Ministry of Finance and Budget oversight responsibility over the OECFM. All of the OECFM’s Council decisions must be approved by the Commissaire du Government, which is nominated under a Decree of the Ministry of Finance and Budget.

Although there is no public oversight of the audit profession in Madagascar, the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) reports in its 2015 SMO Action Plan that such a system is expected to be...

Although there is no public oversight of the audit profession in Madagascar, the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) reports in its 2015 SMO Action Plan that such a system is expected to be developed by September 2019.

At the time of the writing of this report, the OECFM regulates all professional accountants in the jurisdiction, including auditors, under Ordinance No. 92–047 of November 5, 1992, On the Organization of the Profession of Chartered Accountant and Finance (and subsequent amendments). The OECFM acts as a licensing authority for members of the profession and maintains a list of auditors and audit firms. Its responsibilities also include (i) to ensure members’ compliance with ethical standards, rules of professional conduct, and standards; (ii) to organize and monitor the education and training of the accountancy profession; (iii) to monitor the performance of Chartered Accountants; (iv) to administer an investigation and disciplinary system to address members’ breaches of professional conduct; (v) to set ethical and professional standards; and (vi) to represent and defend the interest of the profession, nationally and internationally. The Ministry of Finance and Budget oversees the activities of the OECFM under Law No. 2001–023 of January 2, 2002.

The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is a mandatory membership organization established in 1962 in accordance with Ordinance No. 62–104 of October 1, 1962. The OECFM’s mandate and...

The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is a mandatory membership organization established in 1962 in accordance with Ordinance No. 62–104 of October 1, 1962. The OECFM’s mandate and responsibilities, which are outlined in Ordinance No. 92–047 of November 5, 1992, On the Organization of the Profession of Chartered Accountant and Finance (and subsequent amendments), include: (i) to ensure members’ compliance with ethical standards, rules of professional conduct, and standards; (ii) to organize and monitor the education and training of the accountancy profession; (iii) to monitor the performance of Chartered Accountants; (iv) to administer an investigation and disciplinary system to address members’ breaches of professional conduct; (v) to set ethical and professional standards; and (vi) to represent and defend the interest of the profession, nationally and internationally. In addition, the OECFM acts as a licensing authority for members of the profession and maintains a list of auditors and audit firms. It is an adviser to the accounting standard-setter, the Conseil Supérieur de la Comptabilitié.

The Ministry of Finance and Budget oversees the activities of the OECFM under Law No. 2001–023 of January 2, 2002. All of the OECFM’s Council decisions must be approved by the Commissaire du Government, which is nominated under a Decree of the Ministry of Finance and Budget. In addition to being a member of IFAC, the OECFM is a member of the Fédération Internationale Des Experts-Comptables Francophones and the Pan African Federation of Accountants.

In 2008, the World Bank concluded an assessment of the accounting and auditing environment in Madagascar. Based on the results of the assessment published in 2008 in a Report on the Observance of Standards and Codes...

In 2008, the World Bank concluded an assessment of the accounting and auditing environment in Madagascar. Based on the results of the assessment published in 2008 in a Report on the Observance of Standards and Codes (ROSC), the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) designed an action plan to address—with the financial support from the World Bank—the recommendations set out in the ROSC. The actions identified in the action plan were to be completed by 2014. Unfortunately, a political crisis that unfolded in 2009 and lasted for almost five years restricted access to finance for the country, and the implementation of the project has been stalled due to political instability and economic stagnation. Nevertheless, the OECFM reports that important developments occurred, including holding three final certification exams, an increase in the OECFM’s membership, implementing the position of Executive Secretary, and developing a conceptual framework for a quality assurance system.

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...

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 and has plans for the implementation of a system within the next three to four years. In its 2015 SMO Action Plan, the OECFM reports that the initial design of the system has been completed and that a concrete plan for the development and implementation of the QA review system has been developed. The system is expected to become fully operational by September 2017.

The Ministry of Finance and Budget oversees the activities of the OECFM, including the development of the QA review system, under Law No. 2001–023 of January 2, 2002.

Current Status: Not Adopted

Initial professional development (IPD) and continuous professional development (CPD) requirements for professional accountants are outlined in Article 70 of Ordinance No. 92–047 and Decree No.92–960 of November 11...

Initial professional development (IPD) and continuous professional development (CPD) requirements for professional accountants are outlined in Article 70 of Ordinance No. 92–047 and Decree No.92–960 of November 11, 1992. The Decree specifies the accountancy education curriculum and authorizes the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) to determine education and experience requirements. The OECFM reports that the Decree has been amended to align the curriculum requirements with IES and is awaiting the approval of the authorities. Universities and the National Institute of Accounting Sciences and Business Administration deliver the IPD programs.

Other IPD and CPD requirements do not seem to fully comply with IES, and the OECFM has initiated various processes to facilitate convergence with IES. Areas for future convergence include mandating minimum CPD requirements and introducing monitoring of CPD. IES have not been translated into French or Malagasy.

Current Status: Partially Adopted

The Act On Commercial Companies requires financial statements of incorporated and limited liability companies to be audited. Under Ordinance No. 92–047 of November 5, 1992 (and subsequent amendments), the Ordre des...

The Act On Commercial Companies requires financial statements of incorporated and limited liability companies to be audited. Under Ordinance No. 92–047 of November 5, 1992 (and subsequent amendments), the Ordre des Experts Comptables et Financiers de Madagascar (OECFM)’s Council is responsible for promulgating auditing standards. In 2009, the OECFM adopted the 2009 version of ISA translated into French. Auditors of banks and insurance companies are required to apply standards issued by the OECFM. The OECFM has also adopted and partially translated into French International Auditing Practices Statements, International Standards on Review Engagements, International Standards on Assurance Engagements, and International Standards on Related Services.

The Ministry of Finance and Budget oversees the activities of the OECFM, including setting auditing standards, under Law No. 2001–023 of January 2, 2002.

Current Status: Adopted

The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is responsible for the adoption of ethical standards for members of the profession in accordance with Ordinance No. 92–047 of November 5, 1992 (and...

The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is responsible for the adoption of ethical standards for members of the profession in accordance with Ordinance No. 92–047 of November 5, 1992 (and subsequent amendments). Members of the profession are required to adhere to the Code of Ethics issued by the OECFM in accordance with Decree No. 92–960 of November 11, 1992. The OECFM Code of Ethics is more stringent than the IESBA Code of Ethics for Professional Accountants, which has also been adopted for application by the OECFM’s members. The OECFM reports that it adopted the 2013 version of the IESBA Code as translated into French.

The Ministry of Finance and Budget oversees the activities of the OECFM, including setting ethical standards, under Law No. 2001–023 of January 2, 2002.

Current Status: Adopted

The Conseil Supérieur de la Comptabilité in the Ministry of Finance and Budget determines public sector accounting standards under Decree No. 89–161 of June 13, 1989 as amended. Since 2006, government entities are...

The Conseil Supérieur de la Comptabilité in the Ministry of Finance and Budget determines public sector accounting standards under Decree No. 89–161 of June 13, 1989 as amended.

Since 2006, government entities are required to apply the Plan Comptable des Opérations Publiques (PCOP). The PCOP is based on the 2004 version of IPSAS and also incorporates elements of the National Accounting Plan, Plan Comptable General 2005, which is based on the 2004 version of IAS/IFRS.

Current Status: Partially Adopted

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 for its members in accordance with Ordinance...

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 for its members in accordance with Ordinance No. 92–047 of November 5, 1992 (and subsequent amendments). The Ministry of Finance and Budget oversees the activities of the OECFM, including the implementation of the I&D system, under Law No. 2001–023 of January 2, 2002.

The OECFM has assessed its I&D system against the requirements of SMO 6 and has identified a number of areas of less than full compliance. To address the shortcomings, the OECFM has signaled its intent to review the existing by-laws by July 2016.

Current Status: Partially Adopted

Act No. 2003–036 of January 30, 2004, On Commercial Companies, outlines accounting requirements for all companies in Madagascar. Ministerial Decree No. 2004–272 of February 18, 2004 stipulates the accounting...

Act No. 2003–036 of January 30, 2004, On Commercial Companies, outlines accounting requirements for all companies in Madagascar. Ministerial Decree No. 2004–272 of February 18, 2004 stipulates the accounting standards that must be applied by corporate sector entities. The Conseil Supérieur de la Comptabilité, which is based in the Ministry of Finance and Budget, is responsible for setting 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 IAS/IFRS. The PCG permits companies to use IFRS or IFRS for SMEs. Micro entities are permitted to maintain accounting records on a cash basis in accordance with the Système Minimal de Trésorerie.

Banks and other financial institutions are required to apply the Plan Comptable des éstablissements de crédit, while insurance companies must use the Insurance Accounting Plan as established by their respective regulators.

Current Status: Partially Adopted

Relevant OrganizationsConseil Supérieur de la Comptabilité (CSC)Ordre des Experts Comptables et Financiers de Madagascar (OECFM)Relevant LegislationOECFM, Laws Governing the Profession.Relevant PublicationsDeloitte &...

Relevant Organizations

• Conseil Supérieur de la Comptabilité (CSC)
• Ordre des Experts Comptables et Financiers de Madagascar (OECFM)

Relevant Legislation

• OECFM, Laws Governing the Profession.

Relevant Publications

• Deloitte & Touche, IPSAS in Your Pocket, 2015.
• IFRS Foundation, IFRS Application Around the World—Jurisdictional Profile: Madagascar, November 2013.
• OECFM, SMO Action Plan, November 2015.
• World Bank, Report on the Observance of Standards and Codes—Accounting and Auditing: Madagascar, June 2008.