• National professional body: Zambia Institute of Chartered Accountants (ZICA)
• Response to IFAC Member Body Survey on Standard Setting and Regulation
• World Bank ROSC Accounting and Auditing Report

Financial Reporting Framework in Zambia

In December 2010, the Zambia Institute of Chartered Accountants (ZICA) adopted a three-tier financial reporting framework for Zambia. The reporting and auditing requirements for the three tiers under the framework are as follows:

• Publicly accountable entities. Listed companies, public interest entities and government-owned enterprises must use full IFRSs and must be audited.
• Economically significant companies. Companies that are not in the first tier and have annual turnover equal to or exceeding K20 billion (approximately US$4 million) have a choice of using the IFRS for SMEs or full IFRS, and they must be audited.
• Micro and small enterprises. Those with annual turnover below K20 billion (approximately US$4 million) will use the Zambian Financial Reporting Standard for Micro and Small Entities, and an audit is not required.

The three tier financial reporting framework is effective for annual periods beginning on or after 1 January 2011. This effectively means the framework should be applied to financial statements ending on or after 31 December 2011.

The effective date for full compliance with the IFRS for SMEs and the Financial Reporting Standard for MSEs is 1 January 2012. The period from 1 January 2011 to 31 December 2011 is to facilitate transitional arrangements for preparing financial statements.