Myanmar

The accounting and financial reporting framework in Myanmar is stipulated in various notifications issued by the Myanmar Accountancy Council (MAC) and the Myanmar Companies Law. Standard-setting responsibilities are stipulated under the MAC Law.

Accounting Framework

Under Article 17(d) of the MAC Law, the MAC is responsible for setting accounting standards to be applied in Myanmar. Historically, the standards applied in Myanmar were the Myanmar Financial Reporting Standards (MFRS), which were converged with the 2010 version of the International Financial Reporting Standards (IFRS). Under the Myanmar Companies Law, companies that are not defined as small and medium-sized entities (SMEs) under the IFRS Conceptual Framework are required to prepare their financial statements using MFRS. Companies defined as SMEs by IFRS apply the 2010 MFRS for SMEs, which are identical to the 2009 version of the IFRS for SMEs.

Pursuant to Notification No. 18/2018 and Notification No. 19/2018 issued by the MAC, from financial year 2022–2023, public interest entities (PIEs) are required to directly apply IFRS effective at the start of 2022. Notification No. 19/2018 further defines SMEs as entities that are not PIEs and requires them to directly apply IFRS for SMEs effective at the start of 2022. Early application of IFRS and IFRS for SMEs is permitted. Accordingly, IFRS and IFRS for SMEs are applied by direct reference and the MFRS and MFRS for SMEs are being phased out.

Auditing Framework

Under Article 17(d) of the MAC Law, the MAC is responsible for setting auditing standards in Myanmar. Historically, the standards applied in Myanmar were the Myanmar Standards on Auditing (MSA), which were converged with the 2009 International Standards on Auditing (ISA). The MSA are not translated into the local language.

Under the Myanmar Companies Law, every company in Myanmar is required to undergo an audit of its financial statements unless it is classified as a small company. A small company is defined as having annual turnover below 50,000,000 Myanmar kyat and fewer than 30 employees.

Pursuant to Notification No. 20/2018 issued by the MAC, from financial year 2022–2023, PIEs, including financial institutions, insurance companies, public companies, government joint ventures, significant subsidiaries of public companies, and entities described under Section 12 of the Securities Exchange Law, are required to be audited using the effective ISA. Accordingly, ISA are applied by direct reference and the MSA are being phased out.

In Myanmar, Certified Public Accountants (CPAs) are regulated at the state level by the Myanmar Accountancy Council (MAC). CPAs in Myanmar are classified as either Practicing Accountants (PA) or Non-Practicing Accountants (NPA). PAs are CPAs who have passed the CPA qualifying examination administered by the MAC and are registered with the MAC to provide audit and assurance services. NPAs are individuals who have passed the examinations but are not registered to provide audit and assurance services.

The MAC’s authority is set out in the Myanmar Accountancy Council Law of 2015, as amended in 2018 (MAC Law). Under the law, the MAC is responsible for: (i) establishing entry requirements for CPAs; (ii) certifying and licensing auditors; (iii) maintaining a registry of auditors and audit firms; (iv) establishing continuing professional development (CPD) requirements for CPAs; (v) establishing an investigation committee and taking disciplinary action in cases of misconduct; and (vi) establishing a quality assurance (QA) review system. The MAC Law also authorizes the MAC to set auditing, accounting, and ethical standards.

Entry into the profession is overseen by the MAC. Citizens of Myanmar who wish to pursue the CPA qualification must hold a bachelor’s degree in business administration, accounting, or commerce. Candidates are then required to complete Part I and Part II of the CPA qualifying examination, after which successful candidates are certified as CPA (Passed). They must then complete a three-year practical experience program with an approved employer or firm. To obtain a license to conduct audit work, CPA (Passed) individuals must complete their practical experience with a MAC-approved audit firm. Upon meeting these requirements, they are certified as CPA (Qualified). In order to conduct audit work in Myanmar, individuals must pass the CPA qualifying examination, fulfill the practical experience requirements, and register with the MAC to practice as auditors.

Individuals who hold a bachelor’s degree in disciplines other than those listed above are required to pass an entrance examination if they wish to pursue the CPA qualification. Myanmar citizens who hold foreign accountancy qualifications, such as those issued by the Association of Chartered Certified Accountants (ACCA) and the Chartered Institute of Management Accountants (CIMA), are not regulated by the MAC and remain subject to the requirements of their respective bodies. These individuals may obtain the CPA qualification if they pass the CPA qualifying examination and have their practical or work experience verified by the MAC.

Notification No. 13/2015 issued by the MAC distinguishes between regulated and non-regulated services that may be performed in Myanmar.

Regulated services may only be performed by CPA (Qualified) professionals and include statutory audits, forensic audits, review engagements, assurance engagements, agreed-upon procedures, including independent internal audit engagements, and the provision of assurance services as an external auditor on financial statements, including signing declarations on the operational results or financial condition of a business entity that has been audited or prepared.

Non-regulated services may be performed by CPA (Qualified), CPA (Passed), and other professionals. These include bookkeeping and financial accounting, cost and management accounting, preparation of financial statements, financial management consultancy, investment consultancy, tax consultancy and tax filing, company registration and secretarial services, liquidation and insolvency services, accounting system design and development, accounting system review and analysis, non-independent internal audit, accounting education, and share and business valuation services.

There are no independent public audit oversight arrangements in Myanmar. The MAC Law designates the Myanmar Accountancy Council (MAC) as the body responsible for regulating the audit profession and establishing auditing standards in the jurisdiction.

Under the law, the MAC is responsible for: (i) establishing entry requirements for Certified Public Accountants (CPAs); (ii) certifying and licensing auditors; (iii) maintaining a registry of auditors and audit firms; (iv) establishing continuing professional development (CPD) requirements for CPAs; (v) establishing an investigation committee and taking disciplinary actions; (vi) establishing a quality assurance (QA) review system; and (vii) taking disciplinary action in cases of misconduct.

The MAC is not a member of the International Forum of Independent Audit Regulators (IFIAR).

The Myanmar Institute of Certified Public Accountants (MICPA) was established in 2003 following the issuance of an Association Permit from the Associations Formation and Control Central Committee under the Ministry of Home Affairs of Myanmar. In 2013, MICPA was reconstituted as a not-for-profit corporate entity under the authority of the Directorate of Investment and Company Administration. Following the enactment of the MAC Law in 2015, MICPA was formally recognized as the independent national professional accountancy organization in Myanmar. In 2017, in addition to the provisions under the MAC Law, MICPA was re-registered as a company limited by guarantee.

MICPA was established to protect the rights and interests of professional accountants in compliance with relevant laws and regulations, to promote the development of the accountancy profession through training and professional development activities, and to serve as the voice of the profession in Myanmar. Membership with MICPA is mandatory for all CPAs.

MICPA is an IFAC Associate and a Primary Member of the ASEAN Federation of Accountants (AFA).

Under the Myanmar Accountancy Council (MAC) Law, the MAC is responsible for establishing a quality assurance (QA) review system in Myanmar.

Pursuant to Notification No. 9/2018, an Audit Monitoring Committee (AMC) was established under the oversight of the MAC to monitor the work of auditors. In addition, Notification No. 2/2018 made compliance with International Standard on Quality Control 1 (ISQC 1) mandatory for all audit firms.

However, based on the latest publicly available information, a jurisdiction-wide external QA review system incorporating the requirements of SMO 1 has not yet been established and operationalized for mandatory audits. While a legal foundation and oversight structure exist through the MAC and AMC, no evidence was identified to confirm that a fully operational review cycle is currently in place. Accordingly, the status remains Not Adopted.

Current Status: Not Adopted

The Myanmar Accountancy Council (MAC) Law stipulates initial professional development (IPD) and continuing professional development (CPD) requirements in Myanmar and provides both the MAC and the Myanmar Institute of Certified Public Accountants (MICPA) with the mandate to implement these requirements.

Entry into the profession is governed by the MAC and includes academic requirements, a two-part professional examination, and a mandatory three-year practical experience requirement prior to qualification as a Certified Public Accountant (CPA). CPD requirements are also established under the MAC Law for professional accountants.

Although the International Education Standards (IES) have not been formally adopted in Myanmar, the jurisdiction’s IPD and CPD requirements demonstrably align with several of the IES requirements, including practical experience and continuing professional development. In particular, CPD requirements are reported to be aligned with IES 7.

At the time of assessment, no formal timetable has been established for full adoption of the IES. However, given that several core requirements are in place and apply across the regulated profession, the status is assessed as Partially Adopted.

Current Status: Not Adopted

Under Article 17(d) of the Myanmar Accountancy Council (MAC) Law, the MAC is responsible for setting auditing standards in Myanmar.

Historically, the standards applied in Myanmar were the Myanmar Standards on Auditing (MSA), which were converged with the 2009 International Standards on Auditing (ISA). However, pursuant to MAC Notification No. 20/2018, the most updated versions of ISA, as well as related pronouncements, are required to be applied from financial year 2022–2023 onward. This legislative approach adopts the latest effective ISA by direct reference and therefore captures the currently effective 2025 Handbook.

Under the Myanmar Companies Law, every company in Myanmar is required to undergo an audit of its financial statements unless it is classified as a small company.

Accordingly, ISA in effect as of the time of the assessment are adopted and required for application in mandatory audits in Myanmar.

Current Status: Adopted

Under the Myanmar Accountancy Council (MAC) Law, the MAC is responsible for establishing ethical requirements for Certified Public Accountants (CPAs) in Myanmar.

Publicly available information from the Myanmar Institute of Certified Public Accountants (MICPA) confirms that, in September 2019, the MAC adopted and published the 2018 International Code of Ethics for Professional Accountants (including International Independence Standards). MICPA’s website continues to reference and provide access to the 2018 version of the Code.

As the currently effective benchmark is the 2025 Handbook, the jurisdiction is assessed as applying an earlier (2018) version of the Code. Accordingly, the status is assessed as Partially Adopted.

Current Status: Partially Adopted

Under the Auditor General of the Union Law of 2010, the Office of the Auditor General (OAG) is responsible for establishing public sector accounting standards in Myanmar.

Public sector financial reporting in Myanmar is currently based on a single-entry modified cash-based accounting system. State-owned enterprises apply a double-entry accounting framework that is aligned with the Myanmar Financial Reporting Standards (MFRS).

The International Public Sector Accounting Standards (IPSAS) have not been adopted in Myanmar. While the Myanmar Institute of Certified Public Accountants (MICPA) has previously indicated that there are plans to move toward IPSAS adoption in the future, no formal timetable or legislative framework has been identified to support implementation at the time of assessment. Accordingly, the status remains Not Adopted.

Current Status: Not Adopted

Under the Myanmar Accountancy Council (MAC) Law, the MAC is responsible for establishing an investigation and discipline (I&D) system in Myanmar.

Sections 72–79 of the MAC Law establish an Investigation Board and a Discipline Supervisory Committee. The Myanmar Institute of Certified Public Accountants (MICPA) also contributes as a member of both bodies. In addition, Sections 68 and 69 of the MAC Law set out breaches of rules and regulations issued by the MAC that may warrant investigation and disciplinary action.

Based on the latest available assessment, the existing I&D system is operational but does not fully incorporate the requirements of SMO 6. Identified gaps include: (i) initiation of proceedings based only on a complaints-based approach; (ii) no formal linkage between the I&D system and quality assurance (QA) review findings; (iii) absence of an independent tribunal within the disciplinary process; (iv) no third appeals body; (v) no established timelines or tracking mechanisms for case resolution; (vi) no formal public interest mechanism for sharing information on investigations; (vii) no liaison mechanism with outside bodies in cases involving serious crimes; and (viii) no regular review of the effectiveness of the overall process.

Accordingly, the status remains Partially Adopted.

Current Status: Partially Adopted

Under Article 17(d) of the Myanmar Accountancy Council (MAC) Law, the MAC is responsible for setting accounting standards to be applied in Myanmar.

Historically, the standards applied in Myanmar were the Myanmar Financial Reporting Standards (MFRS), which were converged with the 2010 version of the International Financial Reporting Standards (IFRS). However, pursuant to Notification No. 18/2018 and Notification No. 19/2018 issued by the MAC, from financial year 2022–2023, public interest entities are required to directly apply IFRS and small and medium-sized entities are required to apply the IFRS for SMEs Standard.

The IFRS Foundation jurisdictional profile confirms that public interest entities are required to use the latest versions issued by the International Accounting Standards Board (IASB) and that entities must comply with IFRS, including cancellations, amendments, and new pronouncements issued from time to time by the IASB. This legislative approach therefore captures the currently effective 2025 Handbook.

Accordingly, IFRS in effect as of the time of the assessment are adopted and required for application by domestic publicly accountable entities in Myanmar.

Current Status: Adopted

Relevant Organizations

• Office of the Auditor General of Myanmar
• Myanmar Accountancy Council
• Myanmar Institute of Certified Public Accountants

Relevant Legislation

• Myanmar Accountancy Council Law
• Myanmar Companies Law
• Notification No. 18/2018
• Notification No. 19/2018
• Notification No. 20/2018

Relevant Publications

• ASEAN Federation of Accountants, AFA Annual Report, December 2015.
• IFRS Jurisdiction Profile, Myanmar, April 17, 2019.
• IFAC, MICPA SMO Action Plan, 2020