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Accounting and accounting rules in Madagascar

Accounting Rules

Tax Year
The tax year is the calendar year. However, companies may opt for a tax year running from 1 July to 30 June or another tax year.
Accounting Standards
According to Act No. 2003–036 of January 30, 2004, all companies are required to prepare their financial statements in accordance with the General Accounting Plan 2005, which is based on the 2004 version of IFRS and permits companies to use IFRS or IFRS for SMEs (which are not mandatory).
Companies with an annual turnover below MGA 20 million can maintain accounting records on a cash basis in accordance with the Système Minimal de Trésorerie.
Specific accounting requirement are set for banks and insurance companies (outlined in the "Plan Comptable des établissements de crédit" and the "Insurance Accounting Plan Decree", respectively).
Accounting Regulation Bodies
Society of Accounting and Finance Experts of Madagascar (OECFM - Ordre des Experts Comptables et Financiers de Madagascar)
Higher Council of Accounting (CSC - Conseil Supérieur de la Comptabilité)
Accounting Reports
According to the Plan Comptable General (PCG) of 2005, companies (except for small and micro enterprises), have to publish the following documents: a balance sheet, a profit and loss account, a statement of changes in equity, a statement of cash flows and notes to the financial statements.
Publication Requirements
Companies whose securities are traded in a stock market have to publish their financial statements within forty-five days after the approval of the general assembly (Act No. 2003–036 of January 30, 2004, art. 870).
Professional Accountancy Bodies
Society of Accounting and Finance Experts of Madagascar (OECFM - Ordre des Experts Comptables et Financiers de Madagascar)
Certification and Auditing
Incorporated and limited liability companies are required to have their financial statements audited based on size and turnover criteria as defined in the Act No. 2003–036 on Commercial Companies.
Limited liability companies that do not make a public offering have to appoint one auditor, those who do make a public offering have to appoint at least two.
Auditors of banks and insurance companies are required to apply standards issued by the OECFM. Banks have to appoint at least two auditors, who have to be approved by the OECFM.
Accounting News

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Latest Update: July 2022