The basic requirements for accounting, financial reporting, and auditing in Cambodia are set out in the Law on Commercial Enterprises (the Company Law) and the Law on Corporate Accounts, their Audit and the Accounting Profession (the Accounting Law) adopted in 2002. In 2002, also, the Kampuchea Institute of Certified Public Accountants and Auditors was created.
The Accounting Law mandates the use of Cambodian Accounting Standards for preparation of legal entity financial statements, small and medium enterprises are subject to simplified accounting requirements. Except for banks and similar financial institutions, there is no requirement for companies to file their annual financial statements with the government.
The Accounting Law mandates the National Accounting Council (NAC) to act as policy overseer in the field of accounting. The National Accounting Council was established as a division of the Ministry of Economic and Finance under the Accounting Law as the official standard-setting body. The 15 existing standards are loosely based on IASs that existed in 2002 and have not been changed since. They cover the following topics:
- Presentation of Financial Statements an Audit of Financial Statements
- Inventories
- Cash Flow Statements
- Net profit or loss for the period, fundamental errors and changes in accounting policies
- Events after the balance sheet date
- Income Taxes
- Property, Plant and Equipment
- Revenue recognition
- Foreign Currency
- Related party disclosures
- Accounting for Investments
- Banks and Financial Institutions
- Provisions, Contingent Liabilities and Contingent Assets
- Intangible Assets
Accounting standards for banks and similar financial institutions are supplemented by regulations issued by The National Bank of Cambodia. A World Bank ROSC report for 2007 stated: "Although all banks and similar financial statements are claiming that they comply with IFRSs, in reality there exist differences between disclosed accounting policies and actual practices."
Cambidia is developing a stock exchange, planned for launch in 2009.
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