Revised categories of entity that are required to apply IFRSs in Fiji
In November 2007, the Council of the Fiji Institute of Accountants approved the introduction of a F$5 million (US$3.25 milion) turnover threshold for three categories of entity that would otherwise be required to follow IFRSs (reported below in our Previous Update), thereby allowing an option for smaller entities within those three categories to apply either IFRSs or the current Fiji Accounting Standards.
Accordingly, the revised list of the categories of entity that are required to apply IFRS, are as follows:
- Public companies, as defined in the Companies Act;
- Government majority owned companies;
- Banking and financial institutions;
- Superannuation, insurance, and insurance broking entities;
- Government entities established under their own statute with annual turnover of at least F$5 million (US$3.25 milion);
- Entities with annual group turnover of at least F$20 million (US$13m) or with assets exceeding F$20 million (US$13m);
- Entities that are publicly accountable (which have debt or equity instruments on public issue or have coercive power to tax, rate or levy to obtain public funds) with annual turnover of at least F$5 million (US$3.25 milion); and
- Entities with annual turnover of at least F$5 million (US$3.25 milion) and where any of the above listed entities have significant influence (through more than 20 per cent ownership), as equity accounting would be applicable for the parent company reporting.
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IFRSs Required in Fiji
The Fiji Institute of Accountants, which is a member body of the worldwide International Federation of Accountants, has adopted International Financial Reporting Standards for all accounting periods beginning from 1 January 2007 for all entities that fall within the following categories:
- Public companies, as defined in the Companies Act*;
- Government majority owned companies;
- Banking and financial institutions;
- Superannuation, insurance, and insurance broking entities;
- Government entities established under their own statute;
- Entities with annual group turnover of at least F$20m (US$13m) or with assets exceeding F$20m (US$13m);
- Entities that are publicly accountable (which have debt or equity instruments on public issue or have coercive power to tax, rate, or levy to obtain public funds); and
- Entities where any of the above listed entities have significant influence (through more than 20 per cent ownership), as equity accounting would be applicable for the parent company reporting.
*Public companies, as defined in the Companies Act, are companies that do not restrict transfer of shares, and have minimum 7 shareholders. There is no limit on the maximum number of shares. All listed companies on the South Pacific Stock Exchange (in Fiji) are public companies, as are all unlisted companies that are incorporated or converted as public companies in accordance with the Companies Act.
Moreover, the Institute has ruled that the members must follow IASBs IFRSs extant as at January each year with an option to adopt earlier any subsequent new standards or updates.
Accounting Standards for Entities Not Required to Follow IFRSs
Until such time the SME framework and standards is developed, the current suite of Fiji Accounting Standards will continue to be used by entities that are not required to comply with IFRSs. FIA is keenly following the developments internationally and in particular the development of an International Financial Reporting Standard for SMEs by the IASB.
Standards on Auditing
The current suite of Fiji Standards on Auditing is generally based on year 2001 version of
International Standards on Auditing.
More Information
The chairman of the FIA Standards Committee summarised the new requirements, and also provided an update on standards to be followed by non-IFRS entities and on auditing standards, in the Institute's Journal August 2007 (PDF 23k).
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