International Federation of Accountants

Belgium

Member Organizations

Member Organization Associate

  Institute for Tax Advisors and Accountants
  Instituut van de Bedrijfsrevisoren - Institut des Réviseurs d'Entreprises

Legal and Regulatory Environment

  • Overview of Statutory Framework for Accounting and Auditing

    As a member of the European Union (EU), Belgium is subject to the accounting, auditing and financial reporting requirements established in EU Regulations and Directives as transposed into national laws and regulations. Belgium has fully aligned its legal framework with the EU acquis communautaire as it relates to the above areas.

    Accounting Framework

    The Accounting Act of 1975 (as amended) stipulates the requirements for preparation of financial statements, including applicable accounting standards and financial reporting thresholds. In accordance with the law, the Belgian Accounting Standards Board (BASB) is responsible for enacting financial reporting standards in Belgium.

    EU-endorsed IFRS are required for the preparation of separate and consolidated financial statements of all companies whose securities trade in a regulated market. Belgium also used the option to require EU-endorsed IFRS in the consolidated financial statements of credit institutions, insurance companies, and investment firms whose securities do not trade in a public market. It also permits EU-endorsed IFRS in the consolidated financial statements of companies other than those mentioned above whose securities do not trade in a public market. Entities that are not required to use EU-endorsed IFRS must use Belgian Generally Accepted Accounting Principles (GAAP) issued by the BASB.

    Auditing Framework

    The Law on the Organization of the Profession and the Public Oversight of Registered Auditors of 2016 (hereinafter “Audit Act of 2016”) complies with the EU audit reform, comprising the Directive 2014/56/EU on statutory audits of annual accounts and consolidated accounts and Regulation (EU) No 537/2014 on specific requirements regarding statutory audit of public interest entities (PIEs), effective December 31, 2016.

    The Audit Act of 2016 defines the scope of entities subject to mandatory audit requirements and establishes the Belgian Audit Oversight College (BAOC). Under the Act, PIEs in Belgium are defined as listed companies, credit institutions, insurance and reinsurance undertakings, and settlement organizations.

    According to the Belgian Code for companies and associations of 2019, all large and medium-sized entities, that meet two of the basic criteria in two subsequent accounting periods are subject to mandatory audits: (i) an annual turnover in excess of EUR 9,000,000 (exclusive of VAT); (ii) total assets over EUR 4,500,000 ; and (iii) more than fifty employees on average during the year. Small companies that meet only one of the audit criteria listed above are exempt from appointing a statutory auditor and are only required to draw up simplified annual accounts.

    All statutory audits must be conducted in accordance with the auditing standards drafted by the Belgian Institute of Registered Auditors (IBR-IRE) and approved by the High Council for the Economic Professions and Minister of Economy, as required by the Audit Act of 2016. IBR-IRE reports on its website that ISA have been applicable in Belgium since 2009 and the 2018 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements is now applicable in the jurisdiction. IBR-IRE reports to be currently working with the Compagnie nationale des Commissaires aux Comptes (CNCC) and the Conseil supérieur de l'Ordre des Experts-Comptables (CSOEC) for a French translation of the standards as well as NBA Netherlands for a Dutch translation.

  • Regulation of Accountancy Profession

    The main laws, accompanied by various Royal Decrees, that regulate the Belgian accountancy profession are the (i) Accounting Act of 1975 (as amended); (ii) Law of 1999 Concerning the Accountancy and Tax Professions; and (iii) The Audit Act of 2016.

    Accountants

    The Accounting Act of 1975 (as amended) and the Law of 1999 Concerning the Accountancy and Tax Professions (Hereinafter “Law of 1999”) set the main activities and responsibilities of the key organizations involved in the regulation of accountants which are the Institute of Accountants and Tax Consultants (IEC-IAB) and the Professional Institute of Accountants and Tax Accountants (IPCF). In accordance with the Law of 1999, IEC-IAB is a mandatory membership organization for accountants and tax consultants while IPCF is a mandatory membership organization for bookkeepers and tax accountants. IEC-IAB accountants and tax consultants must also be registered in the IPCF registry in accordance with Article 16 of the Law of 1999 in order to practice.

    To be included in the IPCF registry, candidates must complete the IPCF training program. Article 51 of the Law of 1999 states that trainees must complete 200 days (1,000 hours of traineeship) of independent professional practice, being carried out during a period of at least twelve months and at most 36 months. IPCF may grant exemptions from undertaking a traineeship to persons holding a status abroad that it finds to be equivalent to that of an accounting professional in Belgium. All trainees and members of IPCF are subject to (i) continuing professional development (CPD) requirements; (ii) a Code that incorporates the requirements of the 2009 IESBA Code of Ethics; and (iii) IPCF’s I&D system.

    To become a member of IEC-IAB, candidates must (i) acquire a university level degree (or higher) that is recognized by the Flemish, French or German-speaking community; (ii) complete a three (3) year internship at the institute or at least seven years of practical experience; and (iii) pass a final examination. Exemptions to the internship program are available on the website.

    The Law of 1999 grants IEC-IAB with responsibility for (i) implementing initial and continuing professional development requirements specified in the law for its members; (ii) providing training and licensing examinations; (iii) conducting an investigation and disciplinary system for its members to ensure compliance with educational and ethical requirements; and (iv) keeping members informed of any revised or new accounting and ethical standards. The Accounting Act of 1975 (as amended) delegates accounting standard-setting authority to the Belgian Accounting Standards Board (BASB).

    Auditors

    Auditors are regulated at the state level under the Audit Act of 2016. The law outlines the roles of the Belgian Institute of Registered Auditors (IBR-IRE) and the Belgian Audit Oversight College (BAOC), which regulate the audit profession.

    Under the Act, IBR-IRE, under the supervision of BAOC, is delegated with the authority to (i) approve and register statutory auditors and audit firms; and (ii) provide continuing professional development (CPD) for auditors. Meanwhile, the BAOC is responsible for conducting quality assurance reviews for all registered auditors carrying out statutory audits of public interest entities (PIEs) and non-PIEs; and conducting investigations of all auditors and directing cases to the Financial Services and Markets Authority (FSMA) Commission of Sanctions as needed.

    In order to practice as an auditor, the Audit Act of 2016 stipulates that an individual must: (i) be a citizen of a Member State of the European Union; (ii) be less than 65 years old; (iii) be free of any criminal convictions; (iv) possess a master’s degree from a Belgian university or equivalent foreign diploma; (v) complete three (3) years of practical training in auditing; (vi) pass a proficiency examination (which is administered by IBR-IRE); and (vii) take the auditor’s oath at the Court of Appeal. Individuals with equivalent foreign qualifications must pass an examination on company law, accounting law, and professional ethics as described in IBR-IRE’s Procedure for Foreign Professionals (2019).

  • Audit Oversight Arrangements

    The Audit Act of 2016 established the Belgian Audit Oversight College (BAOC) as the independent public audit oversight authority.

    The BAOC is responsible for (i) supervising all of the Belgian Institute of Registered Auditors’ (IBR-IRE) operations including (i) maintaining the audit registry; (ii) supervising IBR-IRE’s continuing professional development for auditors; (iii) conducting quality assurance reviews for all registered auditors carrying out statutory audits of public interest entities (PIEs) and non-PIEs; and (iv) conducting investigations of all auditors and directing cases to the Financial Services and Markets Authority Commission of Sanctions as needed.

    BAOC is a member of the International Forum of Independent Audit Regulators.

  • Professional Accountancy Organizations

    Belgian Institute of Registered Auditors (IBR-IRE)

    IBR-IRE is a mandatory membership organization for auditors and audit firms established in accordance with the Audit Act of 2016. The Act Regarding the Organization and Supervision of registered Auditors of 2016 grants IBR-IRE, under the supervision of the Belgian Audit Oversight College (BAOC), with the authority to (i) approve and register statutory auditors and audit firms; and (ii) provide continuing professional development for auditors.

    IBR-IRE is a member of IFAC, Accountancy Europe, and the Fédération Internationale des Experts-Comptables Francophones (FIDEF).

    Institute of Accountants and Tax Consultants (IEC-IAB)

    IEC-IAB is a mandatory membership organization for accountants and tax consultants established in accordance with the Law Concerning the Accountancy and Tax Professions (Law of 1999). IEC-IAB is responsible for (i) implementing initial and continuing professional development requirements specified in the law for its members; (ii) providing training and licensing examinations; (iii) conducting an investigation and disciplinary system for its members to ensure compliance with educational and ethical requirements; and (iv) keeping members informed of any revised or new accounting and ethical standards.

    IEC-IAB is a member of IFAC, Accountancy Europe, FIDEF, and the Confédération Fiscale Européenne.

    Professional Institute of Accountants and Tax Accountants (IPCF)

    IPCF is a mandatory membership organization for bookkeepers and tax accountants established in accordance with the Law of 1999. It is primarily responsible for maintaining a registry for accountants, bookkeepers and tax consultants; and for administering the IPCF training program. All trainees and members of IPCF are subject to (i) continuing professional development requirements; (ii) a Code that incorporates the requirements of the 2009 IESBA Code of Ethics; and (iii) investigation & discipline.

    IPCF is not part of IFAC membership and does not seem to be affiliated with any regional organization.

Adoption of International Standards

  • Quality Assurance

    Prior to the enactment of the Audit Act of 2016, the Belgian Institute of Registered Auditors (IBR-IRE)—the professional accountancy organization for auditors—was responsible for conducting a mandatory QA review system in the jurisdiction for all audits. When functioning, it was in line with SMO 1 requirements.

    However, after the enactment of the Audit Act of 2016, the Belgian Audit Oversight College (BAOC) was given the authority to establish and operate a QA review system for all audits which IBR-IRE reports is also in line with SMO 1 requirements.

    The BAOC conducts quality assurance reviews at least once every three years on auditors of public interest entities (PIEs) and every six years on non-PIE auditors. BAOC reports in its annual report that it conducts risk-based quality control and that reviewers are either members of the Financial Services and Markets Authority (FSMA) or ‘are bound by a collaboration with the FSMA’. For PIEs, quality control is conducted by reviewers that are external to the profession.

    The Institute of Accountants and Tax Consultants (IEC-IAB)—the PAO for accountants and tax consultants— also established a practice review system to further ensure the quality of the services delivered by its members services related to mergers, acquisitions, or liquidations. The Quality Review Commission has been operational since June 2012 and IEC-IAB reports it is aligned with SMO 1 requirements.

    Current Status: Adopted

  • International Education Standards

    The Law Concerning the Accountancy and Tax Professions (hereinafter “Law of 1999”) sets initial and continuing professional development (IPD and CPD respectively) for accountants (preparers); tax consultants; bookkeepers; and tax accountants; to be implemented by universities, the Institute of Accountants and Tax Consultants (IEC-IAB) and the Professional Institute of Accountants and Tax Accountants (IPCF).

    In accordance with the Law of 1999, IEC-IAB is a mandatory membership organization for accountants and tax consultants while IPCF is a mandatory membership organization for bookkeepers and tax accountants. IEC-IAB accountants and tax consultants must also be registered in the IPCF registry in accordance with Article 16 of the Law of 1999 in order to practice. To be included in the IPCF registry, candidates must complete the IPCF training program. Article 51 of the Law of 1999 states that trainees must complete 200 days (1,000 hours of traineeship) of independent professional practice, being carried out during a period of at least twelve months and at most 36 months. IPCF may grant exemptions from undertaking a traineeship to persons holding a status abroad that it finds to be equivalent to that of an accounting professional in Belgium. All trainees and members of IPCF are subject to CPD requirements.

    To become a member of IEC-IAB, candidates must (i) acquire a university level degree (or higher) that is recognized by the Flemish, French or German-speaking community; (ii) complete a three (3) year internship at the institute or at least seven years of practical experience; and (iii) pass a final examination. Exemptions to the internship program are available on the website. IEC-IAB requires its members to complete 120 hours of CPD over three (3) years and monitors members’ fulfillment.

    For auditors, the Audit Act of 2016 and Royal Decree on the Access to the Profession of 2018 stipulate IPD and CPD requirements.

    In order to offer auditing services, individuals must (i) be a citizen of a Member State of the European Union; (ii) be less than 65 years old; (iii) be free of any criminal convictions; (iv) possess a master’s degree from a Belgian university or equivalent foreign diploma; (v) complete three (3) years of practical training in auditing; (vi) pass a proficiency examination (which is administered by the Belgian Institute of Registered Auditors (IBR-IRE)); and (vii) take the auditor’s oath at the Court of Appeal. Auditors must remain members of IBR-IRE and adhere to its rules and regulations in order to practice.

    Candidates for IBR-IRE membership are required to hold a Master’s degree (not necessarily in accounting), complete 23 theoretical training exams (before or during the training) and 11 practical exams, have three years of practical experience (or less if candidates possess 15 years of professional experience) and complete a final assessment (written and oral).

    IBR-IRE requires its members to fulfill 120 hours of CPD over a three-year period, which is monitored through the quality assurance review program by the BAOC.

    Individuals with equivalent foreign qualifications must pass an examination on company law, accounting law, and professional ethics as described in IBR-IRE’s Procedure for Foreign Professionals (2019).

    Overall, while some of the requirements of earlier versions of the IES appear to be in place, further information is needed to assess the extent of alignment and incorporation of the 2019 IES requirements, which emphasize learning-outcomes approaches.

    Current Status: Partially Adopted

  • International Standards on Auditing

    According to the Audit Act of 2016, audits must be conducted in accordance with the standards set by the Belgian Institute of Registered Auditors (IBR-IRE) and approved by the High Council for the Economic Professions and Minister of Economy. The application of these standards is subject to the condition that they are translated into Dutch and French and published on the IBR-IRE website.

    IBR-IRE reports on its website that ISA have been applicable in Belgium since 2009 and the 2018 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements is now applicable in the jurisdiction.

    IBR-IRE completed a French and Dutch translation of the 2018 Handbooks in September 2019.

    Current Status: Adopted

  • Code of Ethics for Professional Accountants

    The Audit Act of 2016 contains the general ethical rules applicable to the registered auditor (with respect to any engagement) as well as the conceptual framework approach. Responsibility for implementation of ethical requirements for auditors lies with the Belgian Institute of Registered Auditors (IBR-IRE). Additional ethical provisions applicable to the statutory auditor are included in the Belgian Code for Companies and Associations.

    In the context of the European audit reform, the High Council for the Economic Professions issued an opinion on December 22, 2015 stating that references to the IESBA Code could be made at the national level. Therefore, the IESBA Code could, according to the High Council for the Economic Professions, be considered by the Belgian legislator as guidance without it being compulsory in part or in whole. As of the date of the assessment, the extent of alignment of ethical requirements in the Audit Act of 2016 with the 2018 International Code of Ethics for Professional Accountants remains to be established.

    The Law of 1999 establishes ethical requirements to be implemented by the Institute of Accountants and Tax Consultants (IEC-IAB) and the Professional Institute of Accountants and Tax Accountants (IPCF) for their members—accountants, tax consultants, and bookkeepers.

    IEC-IAB and IPCF members are required to adhere to a Code that incorporates the requirements of the 2009 IESBA Code of Ethics. Nevertheless, as of the date of the assessment, IEC-IAB reports that revisions to the Code based on the 2018 International Code of Ethics for Professional Accountants are in the process of being approved by the relevant Ministers. It is unclear when the process will be complete since delays are expected due to a pending merger between IEC-IAB and IPCF.

    Current Status: Partially Adopted

  • International Public Sector Accounting Standards

    The Belgian central government follows the federal accounting and budgeting laws including the law of 22 May 2003 concerning the organization of the budget and governmental accounting and the Royal Decree on the execution of the law of 22 May 2003 concerning the chart of accounts.

    The accounting system is on an accrual basis at the central government level and for the Walloon and Brussels local government, for each component of the financial statements (except for cash flow statement). It is also true at the Flemish local government level, except for changes in net asset that are recorded on a modified accrual basis.

    The Belgian Institute of Registered Auditors (IBR-IRE) reports that for the Belgian local authorities, regulation was passed in June 2010 which adopts an accounting system based on IPSAS.

    Current Status: Partially Adopted

  • Investigation and Discipline

    Under the Audit Act of 2016, investigation and discipline (I&D) of auditors is performed by the Belgian Audit Oversight College (BAOC) who may conduct investigations and then refer cases for sanctioning to the Financial Services and Markets Authority (FSMA) as needed.

    Prior to the establishment of the BAOC, IBR-IRE conducted a self-assessment of its own I&D system and reported gaps in (i) administrative processes; (ii) public interest considerations; (iii) liaison with outside bodies; and (iv) regular review of implementation and effectiveness.

    The Law of 1999 Concerning the Accountancy and Tax Professions (hereinafter “Law of 1999”) requires the establishment of a mechanism for investigating and disciplining accounting professionals. In accordance with the detailed requirements of the Law of 1999, the Institute of Accountants and Tax Consultants (IEC-IAB) established mechanisms for investigating and disciplining accountants and tax consultants for misconduct and non-compliance while the Professional Institute of Accountants and Tax Accountants (IPCF) established I&D mechanisms for bookkeepers and tax accountants.

    Accountants and tax consultants are subject to a Disciplinary Commission comprising a judge in the court of commerce, and two IEC-IAB members appointed by the Board that are responsible for maintaining professional discipline. The chairman is appointed by the King on the recommendation of the Minister of Justice. Sanctions can be imposed and determined by disciplinary bodies chaired by a magistrate. Appeals may be granted as stipulated in the Law of 1999.

    Complaints against bookkeepers and tax consultants, in line with the Law, are investigated by IPCF, reviewed by a Commissioner, and forwarded to the Executive Chamber, which hears and judges the cases.

    Professional accountancy organizations may request investigations by the Federal Police for any perceived infringements to the law. All persons who practice as accountants (preparers), tax consultants, bookkeepers, and tax accountants without being registered with the IPCF or IEC-IAB are subject to sanctions as per article 58 of the Law of 1999.

    While the I&D systems of both the IEC-IAB and the IPCF seem to generally be in line with SMO 6 requirements, additional information would help to clarify the full extent of alignment.

    Current Status: Partially Adopted

  • International Financial Reporting Standards

    As a member of the European Union (EU), Belgium is subject to the accounting, auditing and financial reporting requirements established in EU Regulations and Directives as transposed into national laws and regulations.

    EU-endorsed IFRS are required for the preparation of separate and consolidated financial statements of all companies whose securities trade in a regulated market. Belgium also used the option to require EU-endorsed IFRS in the consolidated financial statements of credit institutions, insurance companies, and investment firms whose securities do not trade in a public market. It also permits EU-endorsed IFRS in the consolidated financial statements of other companies whose securities do not trade in a public market.

    The Belgian Accounting Standards Board (BASB) is responsible for enacting financial reporting standards in Belgium in accordance with the Accounting Act of 1975 (as amended) for all other entities. Entities that are not required to use EU-endorsed IFRS must use Belgian Generally Accepted Accounting Principles (GAAP) issued by the BASB, which differ from IFRS.

    IFRS for Small and Medium Enterprises (SMEs) is not adopted in the jurisdiction and there are no known plans for adoption.

    Current Status: Adopted

Disclaimer

IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.

 

Methodology

Methodology
Last updated: 05/2021
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