The financial statements of a firm or a group are a major part of its financial communication. But, the rules determining the presentation of these financial statements may vary whether they are international (International Financial Reporting Standards – IFRS) or local (e.g. US GAAP, French norms, UK GAAP etc…). Though, we could identify a global use of the IFRS in most of the industrialized and emerging countries, what about Monaco, a major financial platform, where accounting rules are not well known?
In order to address this issue, the Order of the Chartered Accountants of the Principality of Monaco has asked for a comparative study of the Monegasque GAAP with the IFRS and French norms.
This study, performed by the specialized firm M²C Audit & Conseil and the Members of the Order of the Chartered Accountants, will allow companies, banks, investors, lawyers:
- To better understand the differences between the Monegasque GAAP, IFRS or French norms (for example when investing in a Monegasque entity).
- To better assimilate the differences between the financial statements of a Monegasque entity and the IFRS.
After the presentation of various accounting environments, the study compares the three standards by themes (rules of presentation, tangible assets, intangible assets, etc…).
The latest version of this study, dated end of 2012, is available on request to the Board of the Order of the Chartered Accountants of the Principality of Monaco.
The accounting sector speeds up its modernization
The economic and legal environment is subject to prompt changes, and the Monegasque accounting profession has to keep pace with major evolutions of regulations which affect our economy.
In such context, the Board of the Order of the Chartered Accountants of the Principality of Monaco has modernized significantly its normative standards as well as its quality control framework.
The first step was achieved at the beginning of the year 2012 with the implementation of new normative professional standards applicable to the profession, the NMEP (Normes Monégasques d’Exercice Professionnel). These standards remain in continuity with the International Standards on Auditing (ISA). The new standards are now obligatorily applicable to the whole accounting profession when exercising its legal (statutory auditing, visa) or contractual duties (bookkeeping, payroll, tax, audit etc…).
The second step, regarding Quality Control, was launched on September 18th, 2012. It is actually being finalized and should allow a better control by the accounting firms of the Principality in 2013.
All these measures will aim to consolidate the existing permanent training program of the Members of the Order of the Chartered Accountants.
These actions demonstrate the strong will of the Order of the Chartered Accountants of the Principality to evolve the regulations and their day-to-day application towards international practices. They also illustrate the active involvement of professionals to the development of Monaco, of their adaptation to such environment in order for the delivered service to be in correlation with the expectations of economic agents.
For more information: http://www.oecm.mc/index.php
