Namibia

The corporate financial reporting, accounting, and auditing requirements in Namibia are governed by the Companies Act 2004.

The Act prescribes the preparation of financial statements in accordance with Statements of Generally Accepted Accounting Practice as determined by the Institute of Chartered Accountants of Namibia (ICAN). In accordance with this mandate, ICAN has adopted International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), including all amendments and new standards as they become effective.

All listed entities on the Namibian Stock Exchange, subsidiaries of foreign holding companies, and public interest entities (PIEs) are required to apply full IFRS. Entities not required to apply full IFRS may apply IFRS for SMEs as issued by the IASB.

Auditing requirements are governed by the Public Accountants’ and Auditors’ Act 1951, under which the Public Accountants’ and Auditors’ Board (PAAB) is legally responsible for the adoption of auditing standards. In 2014, the PAAB formally delegated responsibility for issuing guidance and standards on audit and assurance to ICAN, while retaining statutory authority.

ICAN has adopted International Standards on Auditing (ISA) and other IAASB pronouncements as issued by the International Auditing and Assurance Standards Board (IAASB). Adoption is on a standing basis, meaning all new and revised pronouncements are adopted as and when they become effective, without modification or time lag.

Professional accountants in Namibia may be subject to the regulation of the Institute of Chartered Accountants of Namibia (ICAN) and/or the Namibia Institute of Professional Accountants (NIPA) depending on the type of services they offer. Registered auditors are further subject to the oversight of the Public Accountants’ and Auditors’ Board (PAAB).

Chartered Accountants and Registered Auditors

The PAAB was established by the Public Accountants’ and Auditors’ Act 1951 as amended in 1994 and has the legal responsibility for monitoring and maintaining the quality of the services provided by registered auditors. Under the Act, the PAAB’s functions are to: (i) regulate the registration and minimum requirements of public accountants and auditors through the accreditation of professional bodies; (ii) prescribe an appropriate framework for the education and training of properly qualified public accountants and auditors as well as their ongoing competence through monitoring continuous professional development; (iii) prescribe accounting and auditing standards which are internationally comparable; (iv) investigate and discipline (I&D) any registered auditor for improper conduct; (v) establish ethical requirements for auditors; (vi) maintain separate registers for trainee accountants, public accountants, and auditors; (vii) establish and implement a quality assurance review (QA) system for registered auditors; and (viii) take any actions which it may deem necessary to maintain and enhance the integrity and standards of professional qualifications of accountants and auditors.

Individuals who wish to provide audit services to the public and be a Registered Auditor with the PAAB must hold the designation of Chartered Accountant (CA(Nam) from ICAN by being a member of ICAN and pass the PAAB’s additional requirements. This includes completing an Audit Development Program (ADP) before being able to register with the PAAB. As part of the ADP, individuals are required to complete practical experience requirements that consist of a minimum of 18 months in an audit and assurance environment and 1,500 productive hours in audit and assurance and submit a portfolio of evidence upon completing the ADP demonstrating competencies in audit and assurance.

ICAN was formally constituted on October 20, 1990, by members of the South African Institute of Chartered Accountants who were residing in Namibia and were members of the Southwest African Chapter of the Cape Society of Chartered Accountants, originally formed in 1955. The objectives and responsibilities of ICAN are to: (i) promote the common interest of persons carrying on the accountancy profession throughout Namibia; (ii) adopt and promulgate accounting and auditing standards in the jurisdiction; (iii) implement initial professional development requirements of the PAAB; (iv) conduct all professional examinations; (v) maintain and publish a register of all members; (vi) establish continuing professional development and ethical requirements for its members; (vii) establish an investigative and disciplinary system for its members; and (viii) support the PAAB in the implementation of the quality assurance (QA) review system for registered auditors.

Since 2014, ICAN and the PAAB have established a partnership in which the PAAB is responsible for implementing QA reviews and determining practical experience requirements while ICAN is responsible for conducting examinations and setting auditing standards.

ICAN relies on its partnership with South African Institute of Chartered Accountants (SAICA) to execute education and training responsibilities. ICAN uses SAICA’s education and training requirements as a model for the CA(Nam) qualification. Candidates for CA(Nam) must have a university degree, a Certificate in Theory of Accounting (CTA) (a one-year post graduate course focused on accounting, auditing, tax, and financial management from a university accredited by the National Council of Higher Education), complete practical experience requirements with a PAAB-accredited training office, and pass ICAN’s qualifying examinations, which are SAICA’s qualifying examinations (the Initial Test of Competence (ITC) and the Assessment of Professional Competence (APC)). In 2019, the APC became more localized to reflect Namibian legislation.

SAICA assists with the accreditation of Namibian tertiary education institutions and marks and assesses the examinations on behalf of ICAN. The PAAB also adopted SAICA’s Training Regulations as the Namibian Training Regulations, stipulating that trainee accountants must obtain and present evidence of their competency in four core subject areas, Namibian income tax, and VAT. Registered training offices must comply with SAICA’s guidelines for accreditation of training offices and office inspection visits.

Additionally, given ICAN’s partnership and Mutual Recognition Agreement (MRA) with SAICA, it will also permit members in good standing of other professional bodies that have MRAs with SAICA to apply for ICAN membership.

Professional Accountants

Individuals who perform non-attest functions, such as accounting, tax, and business consulting, may voluntarily join NIPA and be subject to the institute’s rules and regulations. NIPA, previously the Namibian Region of the South African Institute of Professional Accountants (SAIPA), was formally established in June 2007. Its constitution enables it to regulate the accounting profession in Namibia. NIPA’s responsibilities are to: (i) advance the accountancy profession and contribute to the development of the profession to provide high-quality services in the public interest; (ii) uphold and enforce a high standard of efficiency and professional conduct by all members; (iii) institute and implement investigative and disciplinary processes with penalties that include suspension of, or expulsion from, membership; (iv) provide continuous professional development (CPD) for members and ensure compliance with CPD requirements; (v) promote the application of internationally accepted accounting practice and standards; (vi) establish and accredit training programs or centers and as well as trainers in accountancy and to regulate such training schemes and centers.

NIPA offers the following designations to those who meet the initial professional development requirements established by the institute: Practicing Member (NIPA PM); Accredited Bookkeepers; (NIPA AB); and Trainee Members. NIPA PMs must hold a bachelor’s degree in Accounting, complete at least four years of practical experience with an accredited training center and subsequently demonstrate their ability to apply their academic and practical knowledge to an evaluation panel appointed by Council. NIPA ABs should have at least five years of practical experience in addition to some tertiary-level education. Candidates also need to demonstrate their ability to apply their academic and practical knowledge to an evaluation panel appointed by Council.

The Namibian Public Accountants and Auditors Board (PAAB) was established by the Public Accountants’ and Auditors’ Act 1951 as an independent audit oversight entity. It has the legal responsibility for monitoring and maintaining the quality of the services provided by Registered Accountants and Auditors (RAA). The specific responsibilities of the PAAB are further outlined in the Regulation section. The PAAB is not a member of the International Forum of Independent Audit Regulators.

The Institute of Chartered Accountants of Namibia (ICAN)

ICAN was formally constituted on October 20, 1990, by members of the South African Institute of Chartered Accountants who were residing in Namibia and were members of the Southwest African Chapter of the Cape Society of Chartered Accountants, originally formed in 1955. Membership of the institute is comprised of Chartered Accountants (CA(Nam). Any person who wishes to use the CA(Nam) designation must be a member of ICAN and if they wish to offer attest services to the public, must register with the Public Accountants’ and Auditors’ Board (PAAB). The objectives and responsibilities of ICAN are to: (i) promote the common interest of persons carrying on the accountancy profession throughout Namibia; (ii) adopt and promulgate accounting and auditing standards in the jurisdiction; (iii) implement initial professional development requirements of the PAAB; (iv) conduct all professional examinations; (v) maintain and publish a register of all members; (vi) establish continuing professional development and ethical requirements for its members; (vii) establish an investigative and disciplinary system for its members; and (viii) support the PAAB in the implementation of the quality assurance (QA) review system for registered auditors.

In addition to being a member of IFAC, ICAN is a founding member of the Pan African Federation of Accountants (PAFA).

Namibia Institute of Professional Accountants (NIPA)

NIPA, previously the Namibian Region of the South African Institute of Professional Accountants (SAIPA), was formally established in June 2007 and it is a member of PAFA. Its constitution enables it to regulate the accounting profession in Namibia. Individuals who perform non-attest functions, such as accounting, tax, and business consulting, may voluntarily join NIPA as a Practicing Member (NIPA PM); Accredited Bookkeepers; (NIPA AB); or Trainee Members and be subject to the institute’s rules and regulations.

NIPA’s responsibilities are to: (i) advance the accountancy profession and contribute to the development of the profession to provide high-quality services in the public interest; (ii) uphold and enforce a high standard of efficiency and professional conduct by all members; (iii) institute and implement investigative and disciplinary processes with penalties that include suspension of, or expulsion from, membership; (iv) provide continuous professional development (CPD) for members and ensure compliance with CPD requirements; (v) promote the application of internationally accepted accounting practice and standards; (vi) establish and accredit training programs or centers and as well as trainers in accountancy and to regulate such training schemes and centers. NIPA is also a member of PAFA.

Quality assurance reviews are mandated under the Public Accountants’ and Auditors’ Act 1951, which assigns responsibility to the Public Accountants’ and Auditors’ Board (PAAB) for establishing and implementing a quality assurance review system. The PAAB reports that its system incorporates the requirements of SMO 1 and is operational for all mandatory audits conducted by registered auditors. The methodology reflects the IAASB’s quality management standards as issued and effective, and the QA system is linked to the investigative and disciplinary framework.

Current Status: Adopted

Initial professional development requirements are established by the Public Accountants’ and Auditors’ Board under the Public Accountants’ and Auditors’ Act 1951. The Institute of Chartered Accountants of Namibia implements these requirements and establishes continuing professional development obligations for its members. The qualification framework, including academic requirements, professional examinations, and practical experience, is based on the training model adopted from the South African Institute of Chartered Accountants and is aligned with the International Education Standards as issued. Continuing professional development requirements are monitored on an ongoing basis to ensure continued alignment with the IES requirements in effect.

Current Status: Adopted

Under the Public Accountants’ and Auditors’ Act 1951, the Public Accountants’ and Auditors’ Board is responsible for the adoption of auditing standards in Namibia. The Board has delegated responsibility for issuing guidance and standards on audit and assurance services to the Institute of Chartered Accountants of Namibia, while retaining statutory authority. International Standards on Auditing and other pronouncements issued by the International Auditing and Assurance Standards Board are as issued and are effective for application in all mandatory audits.

Current Status: Adopted

Under the Public Accountants’ and Auditors’ Act 1951, the Public Accountants’ and Auditors’ Board establishes ethical requirements for registered auditors. The Board has adopted the International Code of Ethics for Professional Accountants (including International Independence Standards) as issued by the International Ethics Standards Board for Accountants on a standing basis. The Institute of Chartered Accountants of Namibia has also adopted the Code as issued, meaning that all revisions and new pronouncements are adopted as and when effective. However, the Namibia Institute of Professional Accountants applies a Code of Conduct aligned with an earlier version of the IESBA Code. Accordingly, the Code has not been adopted in its entirety for all professional accountants in the jurisdiction.

Current Status: Partially Adopted

Public sector financial reporting in Namibia is governed by the State Finance Act 1991 and is currently prepared on a cash basis. The Local Authorities Act 1992 governs financial reporting at the regional and local levels and does not prescribe the application of International Public Sector Accounting Standards. While certain public sector entities have voluntarily applied IPSAS, there is no formal jurisdiction-wide adoption of IPSAS. Accordingly, IPSAS are considered not adopted at the jurisdiction level.

Current Status: Not Adopted

Under the Public Accountants’ and Auditors’ Act 1951, the Public Accountants’ and Auditors’ Board is authorized to investigate and discipline registered auditors for improper conduct and operates an investigative and disciplinary system that is reported to align with SMO 6 best practices. The Institute of Chartered Accountants of Namibia operates an investigative and disciplinary system for its members, which is operational but does not fully incorporate all SMO 6 best practices, including aspects related to committee composition and certain administrative procedures. The Namibia Institute of Professional Accountants also operates an investigative and disciplinary system for its members and has identified areas for further strengthening. Accordingly, the investigative and disciplinary framework in the jurisdiction is considered partially adopted.

Current Status: Partially Adopted

Under the Companies Act 2004, the Institute of Chartered Accountants of Namibia determines applicable accounting standards in the jurisdiction. ICAN has adopted International Financial Reporting Standards and IFRS for SMEs as issued by the International Accounting Standards Board, meaning that all new and revised standards are adopted as issued and become effective without modification. Full IFRS are required for listed entities and public interest entities.

Current Status: Adopted

Relevant Organizations

• Institute of Chartered Accountants of Namibia (ICAN)
• Namibia Institute of Professional Accountants (NIPA)
• Namibia Financial Institutions Supervisory Authority (NAMIFSA)
• Public Accountants and Auditors’ Board (PAAB)

Relevant Legislation

• Banking Institutions Act 1998
• Companies Act 2004
• ICAN’s By-Laws
• Namibia Financial Institutions Supervisory Authority Act 2001
• NIPA’s By-Laws
• NIPA’s Constitution
• Public Accountants and Auditors Act 1951

Relevant Publications

• Brandt, Edgar, “New Public Accountants and Auditors Bill to strengthen PAAB,” in New Era Reporter, 20 Aug 2019.
• Deloitte & Touche, IASPlus website, Financial Reporting Framework in Namibia, n.d.
• ICAN, SMO Action Plan, 2023.
• IFRS Foundation, IFRS Application Around the World, Jurisdictional Profile: Namibia, 23 June 2017.
• “More accountants can help propel Namibia to new heights,” in New Era Reporter, 8 Aug 2017.
• NIPA, SMO Action Plan, 2023.
• “Opinion: Public Accountants’ and Auditors’ Board: Inspiring confidence in Namibia’s audit profession,” in New Era Live, 28 Nov 2019.