Barbados

In Barbados, the Companies Act, Cap. 308 establishes the financial reporting framework applicable to companies incorporated in the jurisdiction. The Act requires companies, other than certain exempt external companies, to prepare annual financial statements. Under the Companies Regulations, 1984, the Institute of Chartered Accountants of Barbados (ICAB) is recognized as the body responsible for approving accounting standards for application under the Act.

ICAB has adopted International Financial Reporting Standards (IFRS Accounting Standards) and the IFRS for Small and Medium-sized Entities (IFRS for SMEs Accounting Standard) as issued by the International Accounting Standards Board for application in the jurisdiction. IFRS Accounting Standards are required for public interest entities, including listed companies, banks and other financial institutions, insurance companies, credit unions, trust companies, and mutual funds that hold third-party funds or assume third-party risk. Other entities may apply either full IFRS Accounting Standards or the IFRS for SMEs Accounting Standard.

Statutory audit requirements are established under the Companies Act and related legislation. Public interest entities and companies exceeding prescribed revenue or asset thresholds are required to have their financial statements audited by a practising member of ICAB holding a general practising certificate.

ICAB is responsible for establishing auditing and assurance standards in Barbados. The institute has adopted International Standards on Auditing (ISA), International Standards on Review Engagements, International Standards on Assurance Engagements, International Standards on Related Services, and the International Standards on Quality Management (ISQM 1 and ISQM 2) as issued by the International Auditing and Assurance Standards Board without modification for application in the jurisdiction.

In Barbados, the accountancy profession is regulated by the Institute of Chartered Accountants of Barbados (ICAB), which was established under the Institute of Chartered Accountants of Barbados (Incorporation) Act, 1974. Membership in ICAB is mandatory for individuals offering accountancy services to the public in the jurisdiction.

ICAB operates as both the principal professional accountancy organization and the regulatory body for the profession. Under its establishing legislation and related regulations, ICAB is responsible for promoting and maintaining professional standards in public practice, business, and the public sector; safeguarding the professional standing and reputation of the profession; establishing ethical and professional requirements for members; and advising the Government and other stakeholders on matters affecting the profession.

ICAB has direct responsibility for the adoption of accounting, auditing, and ethical standards in the jurisdiction; the licensing and regulation of auditors; the establishment and operation of a quality assurance review system; investigation and disciplinary procedures for members; continuing professional development requirements; and the maintenance of a public register of practising members.

The Chartered Accountant designation is the protected professional title in Barbados. Individuals seeking membership and entry into public practice are generally required to hold membership in a recognized overseas professional accountancy organization, complete relevant practical experience requirements, and obtain a practising certificate issued by ICAB. The institute issues both general and specialty practising certificates. Holders of general practising certificates may engage in all areas of public practice, including statutory audit engagements, while specialty practising certificates are limited to specified areas such as taxation or advisory services.

ICAB recognizes a number of overseas professional accountancy organizations for membership purposes, including the Association of Chartered Certified Accountants, CPA Canada, CPA Australia, Chartered Accountants Australia and New Zealand, the Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accountants of Ireland, the Institute of Chartered Accountants of Scotland, and the American Institute of Certified Public Accountants and Chartered Institute of Management Accountants joint designation pathway. These professional accountancy organizations require candidates to complete professional education programs, practical experience requirements, and final assessments that are designed to align with the International Education Standards. Applications from members of other professional accountancy organizations may be considered by ICAB on a case-by-case basis.

Students pursuing professional accountancy qualifications through recognized overseas professional accountancy organizations are also required to register with ICAB. Student registration requirements include minimum age and educational requirements together with sponsorship or recommendation arrangements established by the institute.

There is no independent public audit oversight authority in Barbados. Oversight and regulation of auditors are carried out by the Institute of Chartered Accountants of Barbados (ICAB) under the Institute of Chartered Accountants of Barbados (Incorporation) Act, 1974 and related regulations. Membership in ICAB is mandatory for individuals conducting statutory audits in the jurisdiction.

ICAB is responsible for the approval, licensing, and regulation of auditors and practising firms in Barbados. Individuals seeking to conduct audits are required to obtain membership in ICAB as Chartered Accountants, fulfill prescribed practical experience requirements, and obtain a general practising certificate issued by the institute. Only holders of general practising certificates are permitted to perform statutory audits. Specialty practising certificates are limited to areas such as taxation and advisory services and do not authorize the holder to perform audits.

Under its legislative mandate, ICAB is responsible for establishing auditing and ethical requirements applicable to its members; adopting auditing and assurance standards for application in the jurisdiction; establishing and operating the quality assurance review system; prescribing continuing professional development requirements; administering investigation and disciplinary procedures; and maintaining a public register of practising members.

ICAB has adopted International Standards on Auditing and the International Standards on Quality Management as issued by the International Auditing and Assurance Standards Board without modification. The institute also operates the jurisdiction’s quality assurance review system for audit firms and practitioners performing statutory audits.

Institute of Chartered Accountants of Barbados (ICAB)

ICAB was established under the Institute of Chartered Accountants of Barbados (Incorporation) Act, 1974 as the national professional accountancy organization in Barbados. Membership in ICAB is mandatory for individuals offering accountancy services to the public in the jurisdiction.

ICAB represents Chartered Accountants, practising members, members in business, and students pursuing professional accountancy qualifications through recognized professional accountancy organizations.

Under its establishing legislation, ICAB is responsible for promoting and maintaining high professional standards within the accountancy profession; safeguarding the professional standing and reputation of its members; establishing ethical and professional requirements; and advising the Government and other stakeholders on matters affecting the profession and the public interest.

In its regulatory and professional capacity, ICAB is responsible for the adoption of accounting, auditing, and ethical standards in Barbados; licensing and regulation of practising members and auditors; operation of the quality assurance review system; investigation and disciplinary procedures; continuing professional development requirements; and maintenance of a public register of practising members.

ICAB also plays an important role in supporting professional education and capacity building in the jurisdiction through cooperation with recognized overseas professional accountancy organizations and regional stakeholders.

In addition to being a member of the International Federation of Accountants, ICAB is a member of the Institute of Chartered Accountants of the Caribbean.

The Institute of Chartered Accountants of Barbados (ICAB) is responsible for establishing and operating the mandatory quality assurance (QA) review system for all audits conducted by practising members in the jurisdiction.

ICAB participates in the regional practice monitoring program coordinated through the Institute of Chartered Accountants of the Caribbean in collaboration with the Association of Chartered Certified Accountants. Under this arrangement, all practising members performing audit engagements are subject to periodic QA reviews. The review cycle is three years for audits of public interest entities and six years for audits of non-public interest entities, with follow-up reviews conducted more frequently where significant deficiencies are identified.

The QA review system includes inspection procedures, reporting of findings, monitoring of remedial actions, and referral to investigation and disciplinary processes where necessary. The scope and design of the system are aligned with the requirements of SMO 1 and apply to all mandatory audits in the jurisdiction.

ICAB has adopted the International Standards on Quality Management (ISQM 1 and ISQM 2) as issued by the International Auditing and Assurance Standards Board and effective from December 15, 2022.

Current Status: Adopted

The Institute of Chartered Accountants of Barbados (ICAB) is responsible for establishing education, practical experience, examination, and continuing professional development requirements for Chartered Accountants in Barbados. ICAB’s by-laws require students and members to comply with education, practical experience, and professional development requirements prescribed by the institute.

ICAB recognizes specified overseas professional accountancy organizations for membership purposes. These bodies require candidates to complete professional accountancy education, practical experience, and final assessment requirements. ICAB also requires members seeking a practising certificate to satisfy continuing professional education requirements prescribed by the institute.

The jurisdiction-level framework includes entry, initial professional development, practical experience, assessment, and continuing professional development requirements and is aligned with the relevant SMO 2 requirements.

Current Status: Adopted

The Institute of Chartered Accountants of Barbados (ICAB) is responsible for adopting auditing standards in Barbados and states that it adopts the international standards issued by the International Auditing and Assurance Standards Board (IAASB) for attestation engagements. ICAB has adopted International Standards on Auditing (ISA) and other IAASB pronouncements as issued, without modification and including effective dates.

ICAB’s adoption of IAASB pronouncements as issued also includes the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities.

Current Status: Adopted

The Institute of Chartered Accountants of Barbados (ICAB) is responsible for establishing ethical requirements for its members in accordance with the Institute of Chartered Accountants of Barbados (Incorporation) Act 1974 and its By-Laws.

ICAB’s By-Laws define its Code of Ethics as the Code of Ethics for Professional Accountants as issued by the IESBA. As such, ICAB’s members are required to adhere to the currently effective version of the IESBA Code.

Current Status: Adopted

The Government of Barbados, through the Ministry of Finance and the Office of the Comptroller General, is responsible for establishing public sector accounting requirements in the jurisdiction. The Public Finance Management Act, 2019 requires the preparation of public sector financial statements in accordance with International Public Sector Accounting Standards (IPSAS) issued by the International Public Sector Accounting Standards Board. (barbadosparliament.com)

Barbados has continued implementation of accrual-basis IPSAS across the central government, while some public sector entities remain in transition. Certain commercial state-owned enterprises continue to apply International Financial Reporting Standards based on the nature of their operations and financing arrangements. The Government also maintains separate reporting arrangements under the Barbados Economic Recovery and Transformation Programme for International Monetary Fund monitoring purposes in parallel with accrual-basis IPSAS financial statements prepared under the Public Finance Management Act and audited by the Auditor General.

As accrual-basis IPSAS have been adopted but implementation is not yet fully complete across all public sector entities, IPSAS are assessed as Partially Adopted.

Current Status: Partially Adopted

The Institute of Chartered Accountants of Barbados (ICAB) is responsible for establishing an investigation and discipline (I&D) system for its members under its by-laws. The by-laws apply to all members, whether in practice or not, and provide for disciplinary action where a member, student, or related person breaches ICAB’s by-laws, rules, regulations, or Code of Ethics.

ICAB has established separate Investigations, Disciplinary, and Appeals Committees. The Investigations Committee investigates complaints and refers matters to the Disciplinary Committee where action is justified. The Disciplinary Committee determines whether professional misconduct has occurred and may impose sanctions, including suspension or expulsion from membership, withdrawal of practising certificates, or other forms of censure. The Appeals Committee may review decisions of the Disciplinary Committee.

The by-laws require lay participation in each of the special committees and prohibit Council members from serving on these committees, supporting independence and public interest considerations. Accordingly, the jurisdiction-level I&D system is operational for ICAB members and is aligned with the relevant SMO 6 requirements.

Current Status: Adopted

The Companies Regulations, 1984 require financial statements prepared under the Companies Act, Cap. 308 to be prepared in accordance with standards approved by the Institute of Chartered Accountants of Barbados (ICAB). ICAB has adopted International Financial Reporting Standards (IFRS Accounting Standards) as the national accounting standards of Barbados.

The IFRS Foundation jurisdiction profile states that IFRS Accounting Standards have been adopted in Barbados, there is no other national generally accepted accounting practice, and the standards are required for domestic public companies and other public interest entities.

Accordingly, IFRS Accounting Standards in effect as of the time of the assessment are adopted and applied by domestic publicly accountable entities. Therefore, IFRS are assessed as Adopted.

ICAB has also adopted the IFRS for SMEs Accounting Standard as issued for eligible entities.

Current Status: Adopted

Relevant Organizations

• Institute of Chartered Accountants of Barbados (ICAB)
• Institute of Chartered Accountants of the Caribbean (ICAC)

Relevant Legislation

• Companies Act Chapter 308 of 2002ICAB’s By-Laws
• HYPERLINK "https://www.icab.bb/ICAB_Public/CPD/CPD%20Regulations/Shared_Content/CPD_Info/Rules.aspx?hkey=b120395a-11bd-4e8e-a65b-2340820f1518" ICAB’s CPD Regulations
• ICAB’s Disciplinary Regulations
• ICAB’s Public Practice Regulations
• ICAB’s Students Regulations
• Financial Institutions Act 1997
• Financial Services Commission Act 2010
• Public Finance Management Act 2019

Relevant Publications

• ACCA, Report on Regulation, 2023.
• ICAB, SMO Action Plan, 2024.
• ICAB, Annual Reports, 2005-2022.
• IFRS Foundation, “IFRS Application Around the World?Jurisdictional Profile: Barbados,” June 2016.
• World Bank, Strengthening Financial Reporting Regimes and the Accountancy Profession and Practices in Selected Caribbean Countries, June 26, 2015.