Bahamas

The financial reporting framework in the Commonwealth of The Bahamas is set out in the Bahamas Institute of Chartered Accountants (BICA) Act, 2015 (the Act), which sets out the obligations for maintaining financial records established under the Companies Act of 1992 and the International Business Companies Act of 2010. The acts contain basic requirements for financial reporting by all companies and set requirements for the preparation of financial statements. There is no requirement to publish financial statements.

The Act and its accompanying Regulations require all financial statements to be prepared and audited in accordance with IFRS and ISA, respectively. Companies incorporated under the Companies Act must appoint auditors unless the shareholders unanimously agree to waive this requirement. Only Licensed Practitioners, who are members of BICA, have the legal authority to sign audit reports on financial statements.

Prior to 2015, the accountancy profession was regulated by the Public Accountants Act of 1991 and the Public Accountants Regulation (Rules of Professional Conduct) of 1993. In 2015, The Bahamas Institute of Chartered Accountants (BICA) Act (the BICA Act) repealed and replaced the previous legislation.

As of 2016, the BICA Act regulates the accountancy profession, defines professional accountants, establishes the requirements for entry into the profession, promotes the best standards of practice in financial reporting and in the expression of professional opinions, and authorizes BICA to register and license professionals wishing to practice accountancy. Under the BICA Act, professional accountants are defined as persons registered as a members, associates, students, or licensees.

BICA’s membership comprises two membership categories: General Members and Licensed Practitioners. General Members may use the designation of Chartered Accountant. Licensed Practitioners have the legal authority to sign audit reports on financial statements and are required to be BICA members. BICA licenses and maintains a register of licensed practitioners.

To qualify as a Licensed Practitioner, applicants must be members of BICA and demonstrate a cumulative period of thirty-six months of approved practical experience in public practice, government, a public corporation, or private business, as determined by Council. BICA also assesses applicants from bodies not specifically prescribed in the Act to ensure alignment with international education requirements.

BICA does not have its own qualification program and accepts candidates from the following certifying bodies as specified in the Act: American Institute of Certified Public Accountants (AICPA); Chartered Professional Accountants of Canada (CPA Canada); Association of Chartered Certified Accountants (ACCA); and Institute of Chartered Accountants in England and Wales (ICAEW).

BICA’s mandate includes establishing ethical requirements, carrying out investigation and disciplinary processes for its members, and conducting quality assurance reviews for its licensees.

Accountants who are employed by business entities, government, academia, and other entities are not required to be members of BICA and are not subject to its regulation and oversight.

The accountancy profession in The Bahamas is self-regulated and there is no independent public audit oversight authority. Licensed Practitioners, who have the legal authority to sign audit reports, must be members of the Bahamas Institute of Chartered Accountants and are subject to its ethical requirements, investigation and disciplinary processes, and quality assurance reviews. Quality assurance reviews are conducted under a tripartite monitoring arrangement with the Association of Chartered Certified Accountants and the Institute of Chartered Accountants of the Caribbean. The Public Practice Committee oversees the monitoring framework and operates independently of Council, while investigative and disciplinary committees are also structured to operate independently in accordance with the BICA Act, 2015.

The Bahamas Institute of Chartered Accountants (BICA), established in 1971, regulates its accountancy profession in accordance with the BICA Act of 2015 (the Act). The Act empowers BICA, among other responsibilities, to define professional accountants; establish the requirements for entry into the profession; promote the best standards of practice in financial reporting and in the expression of professional opinions; establish ethical requirements; carry out investigation and disciplinary processes for its members, as well as quality assurance reviews for licensees; and register and license professionals wishing to practice accountancy.

BICA has two membership categories: General Members and Licensed Practitioners. General Members may use the designation of Chartered Accountant. Licensed Practitioners have the legal authority to sign audit reports on financial statements and are required to be BICA members.

BICA does not have its own qualification program and accepts candidates from the following certifying bodies as specified in the Act: American Institute of Certified Public Accountants (AICPA); Chartered Professional Accountants of Canada (CPA Canada); Association of Chartered Certified Accountants (ACCA); and Institute of Chartered Accountants in England and Wales (ICAEW).

BICA is a member of IFAC and the Institute of Chartered Accountants of the Caribbean (ICAC).

In accordance with the Bahamas Institute of Chartered Accountants Act, 2015 (the Act), all auditors (Licensed Practitioners) are required to be members of the Bahamas Institute of Chartered Accountants and are subject to quality assurance (QA) reviews. The Act and accompanying Regulations provide the legal foundation for the QA review system in the jurisdiction.

BICA operates a mandatory QA review system covering all licensees performing audits and other assurance engagements. Practice monitoring is conducted under a tripartite monitoring arrangement with the Association of Chartered Certified Accountants and the Institute of Chartered Accountants of the Caribbean. The monitoring contract has been renewed through December 2027. Reviews are conducted on a six-year cycle.

The International Standards on Quality Management (ISQM 1 and ISQM 2) are adopted in the jurisdiction and form part of the applicable quality management framework.

The QA review system is operational and is in line with SMO 1 requirements.

Current Status: Adopted

The Bahamas Institute of Chartered Accountants Act, 2015 defines the requirements for entry into the profession and grants authority to the Bahamas Institute of Chartered Accountants to establish and implement those requirements.

BICA does not operate its own initial professional development program. To qualify for membership, applicants must be certified members of prescribed professional accountancy organizations, including the American Institute of Certified Public Accountants, Chartered Professional Accountants of Canada, the Association of Chartered Certified Accountants, and the Institute of Chartered Accountants in England and Wales. These bodies require completion of professional education programs, practical experience, final assessments, and continuing professional development.

To qualify as a Licensed Practitioner, members must demonstrate a cumulative period of thirty-six months of approved practical experience. BICA has established mandatory continuing professional development requirements of 120 hours over a three-year period, including a minimum of 20 verifiable hours annually, with monitoring and enforcement mechanisms in place.

BICA has completed a self-assessment against the International Education Standards and is considering approaches to address IES 8 requirements.

Not all the requirements of the International Education Standards in effect as of the time of the assessment are demonstrably adopted for all professional accountants.

Current Status: Partially Adopted

The Bahamas Institute of Chartered Accountants Act, 2015 delegates to the Bahamas Institute of Chartered Accountants the responsibility to promote the best standards of practice in financial reporting and in the expression of professional opinions. In line with this responsibility, BICA Regulations require the application of International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board for all statutory audits.

Current Status: Adopted

The Bahamas Institute of Chartered Accountants Act, 2015 authorizes the Bahamas Institute of Chartered Accountants to establish ethical requirements for its members. BICA Regulations require application of the International Code of Ethics for Professional Accountants (including International Independence Standards) as issued by the International Ethics Standards Board for Accountants.

Current Status: Adopted

Public sector accounting standards in The Bahamas are governed by the Public Financial Management Act, 2023. The Ministry of Finance is responsible for establishing public sector accounting requirements.

Public sector financial reporting is currently based on national standards and remains on a cash basis. Accrual-basis International Public Sector Accounting Standards (IPSAS) have not been adopted.

The Government has engaged in a phased reform process toward accrual accounting, supported by the Caribbean Regional Technical Assistance Centre. Implementation is structured in five phases; however, IPSAS in their entirety have not yet been adopted for application by public sector entities.

Current Status: Not Adopted

The Bahamas Institute of Chartered Accountants Act, 2015 establishes the legal foundation for the investigative and disciplinary (I&D) system in the jurisdiction and authorizes the Bahamas Institute of Chartered Accountants to investigate and discipline its members.

The Act provides for separate Investigations, Disciplinary, and Appeal Committees, structured to operate independently of Council. The system incorporates both complaints-based and information-based approaches, establishes a link with quality assurance review findings, and permits the imposition of a range of sanctions, including monetary penalties, restriction or removal of practicing rights, and exclusion from membership.

The I&D system is operational. As of 2025, investigations are ongoing and cases have been resolved under the established procedures.

The investigative and disciplinary system incorporates the requirements of SMO 6 and applies to all professional accountants regulated by BICA.

Current Status: Adopted

Prior to 2015, the Public Accountants Act of 1991 and the Rules of Professional Conduct of 1993 required application of IFRS as issued by the IASB for the preparation of financial statements.

The Bahamas Institute of Chartered Accountants (BICA) Act of 2015 delegated to BICA the responsibility to promote the best standards of practice in financial reporting and in the expression of professional opinions. In line with this responsibility, BICA published BICA Regulations in the Official Gazette that require the application of IFRS as issued by the IASB.

Current Status: Adopted

Relevant Organizations

• Bahamas Institute of Chartered Accountants (BICA)

Relevant Legislation

• Bahamas Institute of Chartered Accountants Act, 2015
• Public Accountants Act, 1991
• Public Accountants Regulation (Rules of Professional Conduct), 1993

Relevant Publications

• BICA, SMO Action Plan, Month YEAR.
• International Monetary Fund, The Bahamas: Financial Sector Stability Assessment, 2013.
• IFRS Foundation, “IFRS Application Around the World—Jurisdictional Profile: Bahamas,” June 2016.