Maldives

The financial reporting framework in the Maldives is established under the Companies Act 2023, the Income Tax Act, the Maldives Chartered Accountants Act 2020, and sector-specific legislation and regulations. The legal framework establishes the requirements for the preparation of financial statements, the application of accounting standards, and the conduct of statutory audits.

Under the Companies Act 2023 and the Income Tax Act, registered companies are required to prepare financial statements using internationally recognized accounting standards. The Maldives Chartered Accountants Act 2020 designates the Institute of Chartered Accountants of the Maldives (CA Maldives) as the body responsible for establishing accounting standards in the jurisdiction. CA Maldives reports that the latest International Financial Reporting Standards (IFRS) and IFRS for Small and Medium-sized Entities (IFRS for SMEs) are adopted and effective.

Additional financial reporting requirements apply to regulated entities. The Maldives Banking Act 2010 requires banks and financial institutions to prepare financial statements in accordance with international accounting standards, which are applied as IFRS. Regulation S.122 under the Income Tax Act recognizes IFRS, IFRS for SMEs, and standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions as acceptable financial reporting frameworks for tax purposes by the Maldives Inland Revenue Authority. The Capital Market Development Authority, through its Corporate Governance Code, requires listed companies to prepare financial statements in accordance with IFRS.

Accordingly, IFRS Accounting Standards are required for publicly accountable entities and are assessed as adopted at the jurisdiction level. IFRS for SMEs are also adopted for eligible entities and do not affect the adoption rating.

The Maldives Chartered Accountants Act 2020 also assigns CA Maldives responsibility for establishing auditing standards in the jurisdiction. CA Maldives reports that the latest International Standards on Auditing (ISA) are adopted and effective for application in all mandatory audits. The Regulation on Statutory Audit issued by the Auditor General’s Office requires financial audits of state-owned enterprises to be conducted in accordance with ISA. In addition, the Maldives Banking Act 2010 requires external auditors of banks to conduct audits on a consolidated basis in compliance with recognized auditing standards and applicable regulatory requirements, which are interpreted as ISA.

Mandatory audits apply to companies and regulated entities as prescribed by law, including banks, financial institutions, listed entities, and state-owned enterprises. Accordingly, ISA in effect as of the time of the assessment are adopted and required for application in all mandatory audits.

The accountancy profession in the Maldives is regulated under the Maldives Chartered Accountants Act 2020, which established the Institute of Chartered Accountants of the Maldives (CA Maldives) as the statutory body responsible for regulating and developing the profession. The Act provides CA Maldives with authority over the regulation of the accountancy profession, the registration of members, the licensing of auditors, the code of conduct for members, and related standards and procedures.

Only auditors are subject to mandatory regulation and licensing. Other accountancy professionals are not formally regulated at the jurisdiction level but may join CA Maldives voluntarily. Accordingly, membership in CA Maldives is mandatory for licensed auditors and voluntary for non-auditors.

CA Maldives is responsible for registering members, issuing audit and assurance licenses, establishing and enforcing accounting and auditing standards for the private sector, adopting ethical requirements, monitoring compliance with applicable standards and the Code of Professional Conduct and Ethics, and taking disciplinary action where registered members or licensed auditors breach applicable requirements.

Under the Regulation for Statutory Audit and Assurance Services in the Maldives, individuals and firms must hold a valid practicing certificate issued by CA Maldives to provide statutory audit and assurance services. The regulation establishes licensing categories for individual practitioners and audit firms, eligibility requirements, permitted scopes of practice, conduct requirements, and grounds for revocation of practicing certificates. Licensed auditors and firms are required to conduct audit and assurance engagements in accordance with International Standards on Auditing issued by the International Auditing and Assurance Standards Board.

CA Maldives also administers membership under its Membership Regulation 2020. The regulation provides for two classes of membership, Associate Members and Fellow Members. Membership is available to individuals who meet the criteria established by CA Maldives, including professional accountants who are members of International Federation of Accountants member bodies recognized by the institute. A national professional accountancy qualification has not yet been established, and entry into CA Maldives membership and audit licensing continues to rely significantly on recognized foreign professional qualifications.

This framework reflects a statutory professional body model in which CA Maldives serves as both the professional accountancy organization and the regulator for auditors and audit firms in the Maldives.

There is no independent public audit oversight authority in the Maldives. Oversight of auditors and audit firms is carried out through the Institute of Chartered Accountants of the Maldives (CA Maldives) under the Maldives Chartered Accountants Act 2020 and the Regulation for Statutory Audit and Assurance Services in the Maldives (2021/R-3).

CA Maldives is the statutory body responsible for licensing statutory auditors and audit firms, maintaining the register of licensed auditors, conducting quality assurance reviews, monitoring compliance with applicable auditing and ethical standards, and administering investigation and disciplinary procedures. All individuals and firms providing statutory audit and assurance services are required to hold an audit licence issued by CA Maldives.

Under the Regulation for Statutory Audit and Assurance Services, CA Maldives is responsible for conducting regular reviews of licensed auditors and audit firms to ensure compliance with International Standards on Auditing, ethical requirements, and applicable laws and regulations. Where non-compliance is identified, CA Maldives may impose remedial measures or revoke practicing certificates. The regulation also requires compliance with the International Code of Ethics for Professional Accountants and establishes licensing, renewal, and disciplinary procedures for certified auditors and firms.

Prior to the establishment of CA Maldives, the Auditor General’s Office maintained the licensing and oversight framework for certified auditors under earlier audit regulations. Following the enactment of the Maldives Chartered Accountants Act 2020 and the issuance of the 2021 audit licensing regulation, these regulatory functions were transferred to CA Maldives as part of the broader reform of the profession.

The Maldives is not a member of the International Forum of Independent Audit Regulators. Accordingly, the jurisdiction operates under a professional body-led oversight model rather than an independent public oversight system.

Institute of Chartered Accountants of the Maldives (CA Maldives)

The Institute of Chartered Accountants of the Maldives (CA Maldives) was established in 2020 under the Maldives Chartered Accountants Act 2020 as the statutory professional accountancy organization responsible for regulating and developing the accountancy profession in the Maldives. The Act mandates CA Maldives to structure the profession in accordance with international guidelines and standards.

Membership in CA Maldives includes auditors and other accountancy professionals. Membership is mandatory for licensed auditors and voluntary for non-auditors. CA Maldives admits Associate Members and Fellow Members, including individuals who are members in good standing of International Federation of Accountants member bodies recognized by the institute. Fellow Members must also meet additional professional experience requirements.

CA Maldives’ responsibilities include registering members, issuing audit and assurance licenses, adopting accounting and auditing standards, establishing ethical requirements, monitoring compliance, and supporting the development of the profession through education, training, and professional guidance.

In addition to its national role, CA Maldives is a member of the South Asian Federation of Accountants and the Asian-Oceanian Standard-Setters Group. CA Maldives was admitted as a member of the Asian-Oceanian Standard-Setters Group in November 2022.

Under the Maldives Chartered Accountants Act 2020 and the Regulation for Statutory Audit and Assurance Services in the Maldives, the Institute of Chartered Accountants of the Maldives (CA Maldives) is responsible for establishing and conducting quality assurance (QA) reviews for licensed auditors and audit firms. CA Maldives has established a QA review framework, administered through its Admission and Licensing Committee, which applies to persons and firms licensed under the Act and regulation. The framework provides for firm-level and engagement-level reviews, a risk-based selection approach, written reporting, corrective actions, and an appeal process.

The QA framework states that all firms performing audits of financial statements are subject to review at least once every four years. However, further evidence is needed to confirm that the QA review system is fully operational in practice for all mandatory audits. Accordingly, the jurisdiction-level QA review system is established and broadly aligned with the requirements of SMO 1, but remains assessed as partially adopted until operational implementation is confirmed.

CA Maldives endorsed the International Standards on Auditing and other pronouncements of the International Auditing and Assurance Standards Board for use in the Maldives through Council Resolution RES/2021/028, passed on November 23, 2021. The QA framework specifically references International Standard on Quality Management 1 and International Standard on Auditing 220 (Revised), and CA Maldives’ adoption materials also identify International Standard on Quality Management 2 as endorsed.

Current Status: Partially Adopted

Under the Maldives Chartered Accountants Act 2020, the Institute of Chartered Accountants of the Maldives (CA Maldives) is responsible for establishing initial professional development and continuing professional development requirements for the accountancy profession. The Act provides CA Maldives with responsibility for establishing entry requirements into the profession, setting curricula for professional qualifications and accounting technician programs, and authorizing educational institutions to deliver such programs.

A national professional accountancy qualification has not yet been established. Professional accountants in the jurisdiction generally enter the profession through membership in recognized foreign professional accountancy organizations that are members of the International Federation of Accountants. These include bodies such as the Association of Chartered Certified Accountants, Chartered Institute of Management Accountants, CPA Australia, Chartered Accountants Australia and New Zealand, Institute of Chartered Accountants in England and Wales, and other recognized IFAC member bodies. Membership criteria are established under the CA Maldives Membership Regulation 2020.

CA Maldives has established continuing professional development requirements for its members and provides professional training, seminars, and technical learning opportunities to support compliance. Members are required to complete annual continuing professional development hours in accordance with CA Maldives requirements.

However, further evidence is needed to demonstrate that entry requirements, practical experience, professional assessment, and continuing professional development requirements for all aspiring and professional accountants fully align with the International Education Standards in effect as of the time of the assessment. In particular, the absence of a national qualification pathway and reliance on recognition of foreign qualifications limits full jurisdiction-level adoption.

Current Status: Partially Adopted

Under the Maldives Chartered Accountants Act 2020, the Institute of Chartered Accountants of the Maldives (CA Maldives) is responsible for establishing auditing standards in the Maldives. CA Maldives initially endorsed the International Standards on Auditing (ISA) and other pronouncements issued by the International Auditing and Assurance Standards Board for use in the private sector through Council Resolution RES/2021/028, passed on November 23, 2021.

In August 2025, CA Maldives adopted all subsequent amendments to ISA and other IAASB pronouncements issued after the initial adoption date, and resolved to adopt future revisions unless CA Maldives formally decides to defer or not adopt them. New standards issued after the resolution are to be separately adopted by the Council.

The Institute of Chartered Accountants of the Maldives has demonstrated awareness of and support for the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), including public commentary during the standard's development. However, no public evidence was identified indicating that ISA for LCE has been formally adopted or permitted for use in the Maldives.

Current Status: Adopted

Under the Maldives Chartered Accountants Act 2020, the Institute of Chartered Accountants of the Maldives (CA Maldives) is responsible for establishing ethical requirements for the accountancy profession. The Act authorizes CA Maldives to formulate and enforce the Code of Professional Conduct and Ethics applicable to persons registered with the institute.

CA Maldives states that it adopts the International Code of Ethics for Professional Accountants (including International Independence Standards) as issued by the International Ethics Standards Board for Accountants for application in the Maldives. The Code applies to members of CA Maldives, including licensed auditors and other registered professional accountants.

Current Status: Adopted

Under the Public Finance Act 2006, the Ministry of Finance and Planning is responsible for the public financial management framework in the Maldives, including applicable financial reporting requirements. The Ministry publishes government financial statements in accordance with the Public Finance Regulations and states that the International Public Sector Accounting Standard (IPSAS) Cash Basis is followed for Government of Maldives financial reporting.

The Government is implementing public financial management reforms to support a progressive move toward accrual accounting. The Ministry states that the reform program aims to establish an accounting reform action plan for full implementation of IPSAS modified accrual accounting for whole-of-government financial statements.

Current Status: Partially Adopted

Under the Maldives Chartered Accountants Act 2020, the Institute of Chartered Accountants of the Maldives (CA Maldives) is responsible for establishing an investigative and disciplinary (I&D) system for members and licensed auditors. The CA Maldives Membership Regulation 2020 requires members to comply with the Act, institute regulations, the Code of Professional Conduct and Ethics, and applicable professional standards, and provides for disciplinary action where a complaint is found proven.

The Ethics Committee is a statutory committee of CA Maldives established under the Act. It is responsible for investigating ethics-related complaints referred by the Council, reporting findings to the Council, and recommending actions. The Council is responsible for considering the Committee’s findings and taking disciplinary decisions, including removal from membership where appropriate.

The framework includes complaint-based and own-initiative investigations, an Ethics Committee, Council-level disciplinary decision-making, and an appeals process. However, further evidence is needed to confirm that the system is fully operational and incorporates all requirements of Statement of Membership Obligations 6, including separation between investigative and disciplinary decision-making and documented procedures for hearings and public reporting of results.

Accordingly, an I&D framework has been established and is in the process of being operationalized, but full alignment with SMO 6 cannot yet be confirmed.

Current Status: Partially Adopted

Under the Maldives Chartered Accountants Act 2020, the Institute of Chartered Accountants of the Maldives (CA Maldives) is responsible for establishing accounting standards in the Maldives. CA Maldives initially adopted International Financial Reporting Standards (IFRS) Accounting Standards for application in the jurisdiction and, in August 2025, adopted all subsequent amendments issued by the International Accounting Standards Board after the initial adoption date.

CA Maldives also resolved to adopt future amendments unless the Council formally decides to defer or not adopt them.

IFRS Accounting Standards are required for publicly accountable entities in the Maldives. The IFRS Foundation jurisdiction profile states that the Maldives has adopted IFRS Standards and that companies required to prepare financial statements under the Companies Act must prepare them based on IFRS. The Maldives Inland Revenue Authority also recognizes IFRS as an approved accounting framework for tax purposes, and the Capital Market Development Authority requires listed companies to prepare financial statements in accordance with the reporting standards specified under its continuing disclosure framework.

IFRS for Small and Medium-sized Entities are also adopted in the Maldives.

Current Status: Adopted

Relevant Organizations

Asian-Oceanian Standard-Setters Group (AOSSG)

Capital Market Development Authority (CMDA)

Institute of Chartered Accountants of the Maldives (CA Maldives)

Maldives Inland Revenue Authority (MIRA)

Ministry of Finance, Maldives

South Asian Federation of Accountants (SAFA)

Relevant Legislation

Companies Act 2023

Income Tax Act

Maldives Banking Act 2010

Maldives Chartered Accountants Act 2020

Membership Regulation 2020

Public Finance Act 2006

Regulation for Statutory Audit and Assurance Services in the Maldives

Relevant Publications

CA Maldives Council Resolution RES/2021/028 – Adoption of International Standards on Auditing

CA Maldives Council Resolution RES-C-2022-15 – Adoption of the International Code of Ethics for Professional Accountants

CA Maldives Council Resolution RES-C-2025-44 – Adoption of Subsequent Amendments to IFRS and ISA

CA Maldives Ethics Committee Terms of Reference

CA Maldives Quality Assurance Review Framework

Government of Maldives Consolidated Financial Statements

IFRS Foundation Jurisdiction Profile – Maldives

Ministry of Finance Public Financial Management Reform Program