Accounting and accounting rules in Kuwait

Accounting Rules

Tax Year

From January 1st to December 31st.

Accounting Standards

There is not a mandatory accounting system required in Kuwait. However, companies are asked to respect the International Financial Reporting Standards. Projects of harmonization and unification of an accounting system and its presentation are being discussed at the Gulf Cooperation Council.

Accounting Regulation Bodies

Public Authority for Industry.
Stock Exchange of Kuwait.

Accounting Reports

All commercial companies of Kuwait are required  to keep several accounting books every year. These must be written in Arabic:
- Sales Journal
- Inventory
- General Ledger
- Expenditures Analysis Book
- Stock Shares Evolution Reports
In order to create a financial analysis, companies are required to generate a balance sheet and a profit and loss report, which have to be submitted to the Ministry of Commerce and Industry for its evaluation no later than three months after the end of the fiscal year.

Publication Requirements

The companies wishing to enter in the stock market of Kuwait are required to provide accounting publications. They must have published their audited accounting reports for the last two years prior to their introduction into the stock market. These financial statements must show their structure and their net profits. Still, the Council of Directors of the Stock Exchange of Kuwait can request other elements before giving its approval. All companies quoted on the Stock Market of Kuwait must publish their audited financial statements with their complete balance sheet and the profit and loss report no later than three months after the end of the fiscal year. They must also publish their periodical statements no later than two months after the end of their fiscal period.

Professional Accountancy Bodies

Association of Accountants and Auditors of Kuwait (in Arabic)

Certification and Auditing

The certification and the control of accounts have to be made by an organization independent from the company, certified and registered at the Ministry of Commerce and Industry. The process of certification and control of accounts are ruled by the Law No. 5 of 1981. You can contact an external auditor: Deloitte, Ernst & Young, PricewaterhouseCoopers and KPMG.

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