Morocco

Several pieces of legislation define the corporate financial reporting framework in Morocco.

Accounting Framework

The Conseil National de la Comptabilité (CNC), established by decree in 1989, is mandated by Law 15-89 of January 1993 (enacted by Dahir 1-92-139 of 14 Rejab 1413) to set accounting standards. The CNC has adopted Moroccan Generally Accepted Accounting Principles (GAAP) which differ significantly from IFRS. However, the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco)—the regulatory body—reports that the World Bank initiated an IFRS Conversion Project in 2020 with CNC and Phase 1-Diagnosis has been completed. Phase 2 was initiated in July 2021, and OEC Morocco reports that it is expecting Moroccan GAAP to mostly converge with IFRS and IFRS for SME once the project is complete.

Since 2007, the CNC has been working to require the application of IFRS for listed entities and public interest entities and allowing other entities to apply either the IFRS or the Moroccan GAAP. However, OEC-Morocco reports that this requirement is not legally binding as of the date of this assessment.

The Central Bank of Morocco (Bank Al Maghrib) is responsible for issuing accounting standards for banks and financial institutions. Circular 56/G/2007 issued by Bank Al Maghrib requires that all entities under its supervision use IFRS for accounting periods beginning January 2008.

The Securities Commission is responsible for issuing financial reporting and accounting standards for public companies. Public companies are defined as: (i) any listed company; (ii) any company that engages in advertising to sell its stock; and (iii) any company with more than 100 shareholders. Circular No. 06/05 of 2007 reaffirms the Moroccan Stock Exchange Law (Law No. 52-01) which stipulates that all companies listed on the Casablanca Stock Exchange, other than banks and similar financial institutions, can choose between IFRS and Moroccan GAAP. In practice, most public companies are using IFRS.

The Insurance and Social Welfare Directorate oversees financial reporting and accounting standards for insurance companies. At the time of the assessment, the financial reporting standards for insurance companies are not clear.

Auditing Framework

The Companies Law of 1999 (Law on Corporations 17-95) requires audits for public companies, banks, insurance companies, and all other companies with an annual turnover of more than 50 million MAD. Public companies, banks, and insurance companies must appoint two auditors to conduct audits. Article 160 of Law 17-95 stipulates that audits must be conducted by a certified member of OEC-Morocco.

The Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for establishing auditing standards to be applied in all mandatory audits in Morocco under Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413. OEC-Morocco incorporates latest revisions to the IAASB Handbook that are available in French, on an ongoing basis as they become effective.

As part of the convergence process, the institute has a formal agreement with Fédération Internationale des Experts Comptables et Commissaires aux Comptes Francophones (the International Federation of Francophone Accountants) to have regular access to translated IAASB pronouncements and other papers to update the Moroccan Standards on Auditing and established an International Standard-setting Committee to monitor and review developments to the translated standards. The 2020 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, Volume I and II is the latest version available in French as of the date of this assessment.

Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413 regulates the profession of Chartered Accountants and establishes the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) as the regulatory body.

Under Law 15-89, the institute is responsible for: (i) maintaining a public registry for members; (ii) establishing continuing professional development (CPD) requirements for members; (iii) establishing auditing standards; (iv) establishing ethical requirements; (v) establishing and conducting audit quality assurance (QA) reviews; (vi) investigating and disciplining its members for misconduct and breach of professional rules.

Requirements for entering the accounting and auditing profession are outlined in Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413, including the procedures for certification, licensing, and registration.

The Advanced Institute of Commerce and Business Administration (Institut Supérieur de Commerce et d’Administration des Entreprises), a public institution attached to the Ministry of Commerce and Industry, prepares candidates for entry into the profession. The program is open to individuals who have completed specific bachelor’s degrees outlined in Decree No. 2.89.519. The program consists of (i) a three-year curriculum, with an examination after each year, (ii) a three-year professional internship throughout the program; and (iii) the preparation and defense of a dissertation after successfully completing the program.

Those who successfully passed the program are eligible to register with OEC-Morocco and practice accounting or auditing with the Chartered Accountant title. All Chartered Accountants must remain members in good standing of OEC-Morocco in order practice, which means that they must pay annual membership fees, adhere to the institute’s code of conduct, and fulfill continuing professional development requirements.

The profession is self-regulated and there is no independent audit oversight authority.

Auditors are regulated by the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) in accordance with Law 15-89. In accordance with Article 160 of Law 17- 95, only OEC-Morocco members can conduct audits.

Under Law 15-89, the institute is responsible for: (i) maintaining a public registry for members; (ii) establishing continuing professional development requirements for members; (iii) establishing auditing standards; (iv) establishing ethical requirements; (v) establishing and conducting audit quality assurance reviews; (vi) investigating and disciplining its members for misconduct and breach of professional rules.

OEC-Morocco reports that it is still working with relevant authorities to establish an oversight body. However, there is no estimated timeline for its establishment and operationalization.

Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413 established the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco). Membership of the institute is comprised of Chartered Accountants and membership is mandatory to practice accounting or auditing.

Under Law 15-89, the institute is responsible for: (i) maintaining a public registry for members; (ii) establishing continuing professional development requirements for members; (iii) establishing auditing standards; (iv) establishing ethical requirements; (v) establishing and conducting audit quality assurance reviews; (vi) investigating and disciplining its members for misconduct and breach of professional rules.

In addition to being a member of IFAC, OEC-Morocco is also a member of the Pan African Federation of Accountants, the Federation of Mediterranean Certified Accountants, and the International Federation of Francophone Accountants.

According to Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413, the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for the establishment of a mandatory quality assurance (QA) review system for all audits of financial statements.

OEC-Morocco reports it has adopted the French version of ISQC 1 and it has been conducting QA reviews using a mixed-approach since 2012. OEC-Morocco reports that its QA system incorporates the main requirements of SMO 1.

Current Status: Adopted

Initial professional development requirements are set by Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413 and the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for implementing the initial professional development (IPD) requirements in addition to setting and monitoring members’ compliance with continuing professional development (CPD) requirements.

The Advanced Institute of Commerce and Business Administration (Institut Supérieur de Commerce et d’Administration des Entreprises), a public institution attached to the Ministry of Commerce and Industry, prepares candidates for entry into the profession. The program is open to individuals who have completed specific bachelor’s degrees outlined in Decree No. 2.89.519. The program consists of (i) a three-year curriculum, with an examination after each year, (ii) a three-year professional internship throughout the program; and (iii) the preparation and defense of a dissertation after successfully completing the program.

Those who successfully passed the program are eligible to register with OEC-Morocco and practice accounting or auditing with the Chartered Accountant title. All Chartered Accountants must remain members in good standing of OEC-Morocco in order practice, which means that they must pay annual membership fees, adhere to the institute’s code of conduct, and fulfill continuing professional development requirements.

In 2004, OEC-Morocco established the Training Institute of OEC-Morocco to strengthen its CPD programs. The institute states that its CPD requirements are in line with the revised IES 7 requirements. OEC-Morocco reports in its Action Plan that the IES requirements were taken into consideration in the revision of local training standards. OEC-Morocco reports overall alignment with 2019 IES.

Current Status: Adopted

The Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for establishing auditing standards to be applied in all mandatory audits in Morocco under Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413.

OEC-Morocco reports that it incorporates latest revisions to the IAASB Handbook that are available in French, on an ongoing basis as they become effective.

As part of the convergence process, the institute has a formal agreement with Fédération Internationale des Experts Comptables et Commissaires aux Comptes Francophones (the International Federation of Francophone Accountants) to have regular access to translated IAASB pronouncements and other papers to update the Moroccan Standards on Auditing and established an International Standard-setting Committee to monitor and review developments to the translated standards. The 2020 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, Volume I and II is the latest version available in French as of the date of this assessment.

Current Status: Partially Adopted

Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for adopting ethical requirements for its members, which includes all professional accountants in the jurisdiction, in accordance with Law 15-89 1993 enacted by by Dahir 1-92-139 of 14 Rejab 1413.

OEC-Morocco reports that it incorporates latest revisions to the IESBA Code of Ethics on an ongoing basis as they become effective.

Current Status: Adopted

The Conseil National de la Comptabilité (CNC) is mandated to adopt public sector accounting standards in Morocco. In 2007, the CNC with the assistance of French consultants, began working on testing implementation of IPSAS for the General Treasury of Morocco. Subsequently, the CNC approved the new General Treasury of Morocco’s State Chart of Accountants, which is aligned with accrual-basis IPSAS, issued in December 2008. No other public sector accounting standards have been adopted since then and there are no further plans to update the Treasury’s standards or adopt IPSAS at other levels of government.

Current Status: Partially Adopted

In accordance with Law 15-89, the National and Regional Councils of the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) has direct responsibility for the investigation and discipline (I&D) of OEC-Morocco members, which includes all practicing professional accountants in the jurisdiction.

In 2021, OEC-Morocco conducted a self-assessment of its I&D system against SMO 6 requirements and reports that its revised procedures are fully aligned.

Current Status: Adopted

The Conseil National de la Comptabilité (CNC), established by decree in 1989, is mandated by Law 15-89 of January 1993 (enacted by Dahir 1-92-139 of 14 Rejab 1413) to set accounting standards. The CNC has adopted Moroccan Generally Accepted Accounting Principles (GAAP) which differ significantly from IFRS. However, the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco)—the regulatory body—reports that the World Bank initiated an IFRS Conversion Project in 2020 with CNC and Phase 1-Diagnosis has been completed. Phase 2 initiated in July 2021, and OEC Morocco reports that it is expecting Moroccan GAAP to mostly converge with IFRS and IFRS for SME once the project is complete.

Since 2007, the CNC has been working to require the application of IFRS for listed entities and public interest entities and allowing other entities to apply either the IFRS or the Moroccan GAAP. However, OEC-Morocco reports that this requirement is not legally binding as of the date of this assessment.

The Central Bank of Morocco (Bank Al Maghrib) is responsible for issuing accounting standards for banks and financial institutions. Circular 56/G/2007 issued by Bank Al Maghrib requires that all entities under its supervision must use IFRS for accounting periods commencing in January 2008.

The Securities Commission is responsible for issuing financial reporting and accounting standards for public companies. Circular No. 06/05 of 2007 reaffirms the Moroccan Stock Exchange Law (Law No. 52-01) which stipulates that all companies listed on the Casablanca Stock Exchange, other than banks and similar financial institutions, can choose between IFRS and Moroccan GAAP. In practice, most public companies are using IFRS.

The Insurance and Social Welfare Directorate oversees financial reporting and accounting standards for insurance companies. At the time of the assessment, the financial reporting standards for insurance companies are not clear.

Current Status: Partially Adopted

Relevant Organizations

• Conseil National de la Comptabilité (CNC) Morocco
• Ordre des Experts-Comptables du Royaume du Maroc (OEC-Morocco)
• Securities Commission (CDVM)

Relevant Legislation

• Law No. 15-89 regulating the practice of Certified Accountancy and establishing l’Ordre des Experts-Comptables, as enacted by Dahir No. 1-92-139 of January 8, 1993
• Companies Law of 1999 (Law on Corporations 17-95)

Relevant Publications

• Ahsina, Khalifa, et al. L’impact de l’adoption des IFRS sur les sociétés cotées à la bourse de Casablanca: une étude exploratoire, September 2014.
• European Bank for Reconstruction and Development (ERBD), Commercial Laws of Morocco: an Assessment by the ERBD, May 2013.
• Deloitte IAS Plus, “IFRS are permitted for listed companies in Morocco,” July 2005.
• Deloitte IAS Plus, “Update on accounting standards in Morocco,” August 2006.
• OEC-Morocco, SMO Action Plan, August 2021.
• PriceWaterHouseCoopers, IFRS Adoption by Country, 2015.
• RSM Morocco, “Audit and Assurance: Auditing in Morocco,” n.d.
• World Bank, Report on the Observance of Standards and Codes—Accounting and Auditing (ROSC: A&A) Kingdom of Morocco (Morocco), July 2002.