• National professional organisation website: Fiji Institute of Accountants
• Response to IFAC Member Body Survey on Standard Setting and Regulation

Financial reporting framework in Fiji

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 million) turnover threshold for three categories of entity that would otherwise be required to follow IFRSs (reported 6 November 2007), 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 million);
• 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 million); and
• Entities with annual turnover of at least F$5 million (US$3.25 million) 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.

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).