Financial Reporting

Keeping you abreast with latest developments in financial reporting

Three-tier Financial Reporting Framework

Zambia uses a three tier financial reporting framework. Entities are required to use one of the three frameworks depending on the type of the entity. Under the three tier financial reporting framework, entities are categorised as follows:

No.Type of EntityFinancial Reporting Framework
1.Listed Companies, Public Interest Entities and Government Owned EnterprisesFull IFRS
2.Economically Significant Companies – companies that are not public companies or quoted on the stock exchange with turnover of K20 million and above.IFRS for SMEs or Full IFRS if the Company opts to use it
3.Micro and Small Entities – entities with Turnover of less than K20 million.Zambian Financial Reporting Standard for Micro and Small Entities

 Useful links

1. IFRS for SMEs
2. Zambia Financial Reporting Standards for Micro and Small Entities
*** If the entity actively trades financial instruments (including shares, derivatives, and bonds) or if it is a real estate investment company, it must use the IFRS for SMEs or full IFRSs.

Financial Reporting Standard for Micro and Small Enterprises (MSEs) In Zambia

The Financial Reporting Standard for MSEs in Zambia is intended for use by the Micro and Small Enterprises in Zambia as set out in Section 1 of the Standard. Entities that are not Micro and Small Enterprises are therefore not eligible to use this Standard.

This standard is designed to apply to the General Purpose Financial Statements of all profit oriented entities. General purpose financial statements are those directed to general financial information needs of a wide range of users (such as shareholders, creditors, employees and the general public) who are not in position to demand reports tailored to meet their particular information needs. Click to download the standard

 Accounting Standards Updates

Developments in the business environment are increasingly becoming more dynamic and complex thereby complicating Financial Reporting.  Therefore, constant changes and revisions will continue to characterise Accounting standards.We have therefore dedicated this section to contemporary accounting publications issued by various Standards Setting Bodies including the International Accounting Standards Board (IASB), International Auditing and Assurance Standards Board (IAASB) and associated bodies.For information on technical updates, click here