Barbados

In Barbados, the Companies Act Chapter 308 of 2002 (amended 2019) addresses financial reporting requirements. The Act requires all companies, except external companies as defined in the amendments, to prepare financial statements.

Under Cap. 308, Companies Regulations, 1984, paragraph 10, it states that the Institute of Chartered Accountants of Barbados (“ICAB”) is the standard setter for the accounting principles to be used by companies incorporated under the Companies Act Cap. 308:

10. The financial statements referred to in section 147 of the Act and the auditor’s report referred to in section 164 of the Act must, except as otherwise provided by this Part, be prepared in accordance with standards approved by the Institute of Chartered Accountants of Barbados.

ICAB has fully adopted IFRS and IFRS for SMEs as issued, including effective dates, as the national accounting standards since 2007 and 2010, respectively. Public interest entities, such as companies listed on the stock exchange, banks or similar financial institutions, non-banking financial services, trust companies, credit unions, insurance companies, and mutual funds that take third party risks or funds, are required to use full IFRS while all other companies may use either IFRS or IFRS for SMEs.

Public interest entities, as described above, and companies with gross revenues or assets more than BDS 4,000,000 must undergo an annual audit by an individual who holds a practising certificate from the ICAB. ICAB has adopted ISA and all other pronouncements of the IAASB as issued without modification (ISREs, ISAEs, ISRSs and ISQMs) as the applicable auditing standards.

In Barbados, accountancy professionals are regulated by the Institute of Chartered Accountants of Barbados (ICAB). It was established by the Institute of Chartered Accountants of Barbados (Incorporation) Act 1974 and its membership includes Chartered Accountants along with students pursuing professional accounting qualifications.

According to the legislation, ICAB has the responsibility to: (i) promote, foster and maintain the highest standards of accounting in public practice, the public service and commercial and industrial spheres; (ii) safeguard and enhance the professional standing, interest and reputation of accountants who are members thereof and are employed in the spheres specified above; (iii) maintain the highest standards of professional etiquette and ethics amongst its members and encourage the observance of such standards among non-members; and (iv) express its views to the Government, public authorities, commissions of enquiry and similar bodies regarding matters affecting its members and the profession.

In its regulatory role, ICAB is responsible for the following aspects: (i) the adoption of accounting and auditing standards in the jurisdiction; (ii) establishing ethical requirements for its members; (iii) licensing and regulation of auditors in Barbados, including the establishment of a quality assurance review system; (iv) prescribing admission requirements; (v) establishing continuing professional development requirements for its members; (vi) the investigation and discipline of its members; and (vii) maintaining a public registry of its practicing members.

Membership of the institute is required to offer accountancy services to the public. Individuals wishing to enter public practice must fulfill the following requirements: be a local resident, apply and register as a Chartered Accountant of ICAB by being a member of one of the professional accountancy organizations (PAO) listed below, demonstrate proof of monitored practical experience before, during, and after qualification, and receive a practising certificate from the institute. The institute issues two types of practising certificates: general and specialty. A general practising certificate is issued to qualified members who intend to engage in all areas of public practice while specialty practising certificates are granted to members who engage in public practice but are restricted to taxation or advisory/consulting services based on their practical experience. Accordingly, only ICAB members with a general practising certificate may conduct audits.

The accountancy profession in Barbados has grown through the inclusion of professional accountants qualified overseas. ICAB has determined a list of overseas institutes that are recognized for ICAB membership purposes—and consequently the initial professional development requirements for professional accountants in the jurisdiction. The recognized overseas accountancy institutes include: the Association of Chartered Certified Accountants, the Institute of Chartered Accountants in England & Wales, the Institute of Chartered Accountants of Scotland, the Institute of Chartered Accountants of Ireland, CPA Australia, CPA Canada, the Institute of Chartered Accountants of Australia and New Zealand, and AICPA—CIMA. These PAOs require aspiring members to complete a professional accountancy education program, a practical experience requirement, and pass final examinations that are developed in line with the IES. ICAB will review applications of professionals from other PAOs on a case-by-case basis.

Lastly, students enrolled in any of the abovementioned accountancy organizations are required to register as a student of ICAB. To register as a student, individuals must have been recommended for registration by a member of ICAB or by someone of official standing approved by the Council, not be less than 18 years of age, and have passed examinations accepted by the institute indicating a satisfactory standard of general education.

There is no independent audit oversight authority. Auditors in Barbados are regulated by the Institute of Chartered Accountants of Barbados (ICAB) as established by the Institute of Chartered Accountants of Barbados (Incorporation) Act 1974. Membership of the institute is mandatory to practice auditing.

After acquiring membership of ICAB as a Chartered Accountant by fulfilling educational, practical experience, and examination requirements, ICAB members must satisfy additional requirements to publicly practice. These include: being a local resident, demonstrating proof of monitored practical experience before, during, and after qualification, and receiving a practising certificate from the institute. The institute issues two types of practising certificates: general and specialty. A general practising certificate is issued to qualified members who intend to engage in all areas of public practice while specialty practicing certificates are granted to members who engage in public practice but are restricted to taxation and consulting based on their practical experience. Accordingly, only ICAB members with a general practicing certificate may conduct audits.

According to its founding legislation, ICAB is responsible for the following regulatory aspects: (i) the adoption of auditing standards for the jurisdiction; (ii) establishing ethical requirements for its members; (iii) licensing and regulation of auditors in Barbados, including the establishment of a quality assurance review system; (iv) prescribing admission requirements; (v) establishing continuing professional development requirements for its members; (vi) the investigation and discipline of its members; and (vii) maintaining a public registry of its practising members.

Institute of Chartered Accountants of Barbados (ICAB)

ICAB was established by the Institute of Chartered Accountants of Barbados (Incorporation) Act 1974. Membership of the institute is mandatory to offer accountancy services to the public. ICAB represents Chartered Accountants along with students pursuing professional accounting qualifications.

According to the legislation, ICAB has the responsibility to: (i) promote, foster and maintain the highest standards of accounting in public practice, the public service and commercial and industrial spheres; (ii) safeguard and enhance the professional standing, interest and reputation of accountants who are members thereof and are employed in the spheres specified above; (iii) maintain the highest standards of professional etiquette and ethics amongst its members and encourage the observance of such standards among non-members; and (iv) express its views to the Government, public authorities, commissions of enquiry and similar bodies regarding matters affecting its members and the profession.

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

The Institute of Chartered Accountants of Barbados (ICAB) is responsible for establishing a mandatory quality assurance (QA) review system for all audits as well as adopting relevant standards and other IAASB pronouncements. ISQM 1 & ISQM 2 are adopted by ICAB as of 2023.

ICAB established its QA review program in January 2009 as part of a tripartite agreement between ICAB, the Association of Chartered Certified Accountants (ACCA), and the Institute of Chartered Accountants of the Caribbean. New contracts were signed in 2016 and 2022 whereby all practising members who perform audit services are covered by the reviews. The QA review cycle is six years with audits of non-public interest entities (PIEs) and three years with audits of PIES. Auditors with unsatisfactory reports may be reviewed on a shorter cycle.

ICAB indicates that the scope and design of the QA review system as developed by the ACCA is in line with SMO 1 requirements.

Current Status: Adopted

Section 5 of the Institute of Chartered Accountants of Barbados (Incorporation) Act 1974 requires the Institute of Chartered Accountants of Barbados (ICAB) to set rules and regulations for the accountancy profession. Accordingly, ICAB’s Student Regulations establish initial professional development (IPD) requirements while its Continuing Professional Development (CPD) Regulations establish CPD requirements.

The accountancy profession in Barbados has grown through the inclusion of professional accountants qualified overseas. ICAB has determined a list of overseas institutes that are recognized for ICAB membership purposes—and consequently the initial professional development requirements for professional accountants in the jurisdiction. The recognized overseas accountancy institutes include: the Association of Chartered Certified Accountants, the Institute of Chartered Accountants in England & Wales, the Institute of Chartered Accountants of Scotland, the Institute of Chartered Accountants of Ireland, CPA Australia, CPA Canada, the Institute of Chartered Accountants of Australia and New Zealand, and AICPA—CIMA. These PAOs require aspiring members to complete a professional accountancy education program, a practical experience requirement, and pass final examinations that are stated to be in line with the latest IES to date. ICAB will review applications of professionals from other PAOs on a case-by-case basis.

ICAB indicates that it has included an annual tax update as part of its CPD programming and offers periodic legislative updates. ICAB is also currently in discussions with the Barbados Revenue Authority and the IBFD to develop a curriculum of tax learning for Barbados. Its CPD regulations have been updated to be in line with the revised 2019 IES.

Current Status: Adopted

In accordance with Section 5 of the Institute of Chartered Accountants of Barbados (Incorporation) Act 1974, the Institute of Chartered Accountants of Barbados (ICAB) is responsible for adopting auditing standards. Through direct reference, ICAB has adopted ISA as well as all other pronouncements as issued by the IAASB without modifications and including effective dates.

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 Barbados government, specifically, the Comptroller General, is responsible for setting public sector accounting standards.

In 2019, the Public Finance Management Act (PFM Act) was passed and specified IPSAS as issued by the IPSASB as the accounting standards to be applied by public sector entities. As of the date of this assessment, some government entities are still transitioning from cash-basis IPSAS to accrual-basis IPSAS, and Commercial State Owned Entities that also have debt from commercial banks are allowed to use IFRS. Most of central government has transitioned to accrual-basis IPSAS.

The Institute of Chartered Accountants of Barbados (ICAB) reports that the Government continues with two types of financial reporting—the first is under the International Monetary Fund (IMF) Programme using a special basis of reporting (the Barbados Economic Recovery and Transformation Programme) to be completed within 7-10 days after each month end; and the second is accrual-basis lPSAS financial statements under the PFM Act that are audited by the Auditor General.

Current Status: Partially Adopted

In accordance with the Institute of Chartered Accountants of Barbados (Incorporation) Act 1974 and the Institute of Chartered Accountants of Barbados (ICAB)’s By-Laws, ICAB is responsible for establishing an investigative and disciplinary (I&D) system for its members.

ICAB’s Disciplinary Regulations establish I&D procedures, which it states are in line with the SMO 6 requirements. ICAB has created Investigations, Discipline, and Appeals Committees to carry out its I&D functions. The Investigations Committee is responsible for investigating complaints while the Disciplinary Committee is responsible for conducting hearings and imposing sanctions. ICAB has also ensured independence of the committees through its By-Laws.

Current Status: Adopted

In Barbados, the Companies Act Chapter 308 of 2002 (amended 2019) addresses financial reporting requirements. The Act requires all companies, except external companies as defined in the amendments, to prepare financial statements.

Under Cap. 308, Companies Regulations, 1984, paragraph 10, it states that the Institute of Chartered Accountants of Barbados (“ICAB”) is the standard setter for the accounting principles to be used by companies incorporated under the Companies Act Cap. 308:

10. The financial statements referred to in section 147 of the Act and the auditor’s report referred to in section 164 of the Act must, except as otherwise provided by this Part, be prepared in accordance with standards approved by the Institute of Chartered Accountants of Barbados.

ICAB has fully adopted IFRS and IFRS for SMEs as issued, including effective dates, as the national accounting standards since 2007 and 2010, respectively. Public interest entities, such as companies listed on the stock exchange, banks or similar financial institutions, non-banking financial services, trust companies, credit unions, insurance companies, and mutual funds that take third party risks or funds, are required to use full IFRS while all other companies may use either IFRS or IFRS for SMEs.

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
• Institute of Chartered Accountants of Barbados (Incorporation) Act 1974
• 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.