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Financial Reporting Framework in Tanzania

Tanzania prescribes applicability of IFRS for SMEs

Since 2004, all business entities in Tanzania have been required to use IFRSs except for government business entities, which have been required to use International Public Sector Accounting Standards (IPSASs). The National Board of Accountants and Auditors of Tanzania has clarified which of those entities are now permitted to use the IFRSs for SMEs, as follows:

  • Publicly accountable entities are required to use full IFRSs. These include:
    • entities that offer shares to the public;
    • financial institutions such as banks, insurance, pension funds, mutual funds, securities brokers/dealers;
    • entities that have essential public responsibility or provide essential public service such as utilities; and
    • all entities including government business entities with 100 or more employees or with capital investment in non-current assets above TShs.800,000,000 (approximately US$600,000).
  • Non-publicly accountable entities are permitted to use the IFRS for SMEs. These include private business entities and government business entities with less than 100 employees and capital investment of less than TShs.800,000,000. Such entities may, alternatively, use full IFRSs.
  • Public sector entities may use IPSASs provided that they do not qualify as publicly accountable (see above).

Entities using IFRSs or the IFRS for SMEs must apply those pronouncements as issued by the IASB in full and without modificaiton. Click for Resolution of Tanzania National Board of Accountants and Auditors (PDF 68k).

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