|Extent of IFRS application||Status||Additional Information|
|IFRS Accounting Standards are required for domestic public companies||IFRS Standards required for all listed companies (stock exchange currently inactive), financial institutions, and large private companies.|
|IFRS Accounting Standards are permitted but not required for domestic public companies|
|IFRS Accounting Standards are required or permitted for listings by foreign companies|
|The IFRS for SMEs Accounting Standard is required or permitted||No. National standards are currently required.|
|The IFRS for SMEs Accounting Standard is under consideration|
Profile last updated: 06 December 2021
Albania applied for European Union membership in April 2009. As an EU member, Albania would be required to comply with the IAS Regulation adopted by the European Union in 2002.
Albania has adopted IFRS Standards.
The Law on Accounting and Financial Statements No. 25/2018 determines the financial reporting requirements applicable in Albania. Public Interest Entities (PIEs) are required to apply IFRS Standards. PIEs are defined as:
other companies deemed by the Council of Ministers to be relevant to the public interest owing to the nature of their business, their size or their number of employees.
The Council of Ministers’ Decision No. 17/2019, stipulates that entities that meet any of the three criteria of nature, size of business and number of employees are of public interest.
All other entities prepare their financial statements in accordance with Albanian National Accounting Standards drafted by the NACA. These entities may choose to apply IFRS Standards.
The Bank of Albania has deferred implementation of IFRS Standards for banks for regulatory purposes and requires prudential reporting from the banking sector. Banking legislation requires banks to prepare their financial statements in accordance with the Financial Reporting Manual, which is based on the 1998 IFRS Standards, according to the World Bank (2019).
It is expected that the implementation of IFRS Standards for regulatory purposes will be applied starting from the year ending 31 December 2021.
IFRS Standards translated and published in Albanian language by the NACA.
Micro, small and medium-sized entities (SMEs) use National Accounting Standards (NAS) issued by the NACA and approved by the Ministry of Finance of Albania in accordance with the procedures established under Law No. 25/2018. In 2015, the NACA, with the assistance of the World Bank, completed the revision of NAS to bring them closer in line with the requirements of the 2009 IFRS for SMEs Standard.
The Accounting Law requires all SMEs to prepare their separate or consolidated financial statements using NAS drafted by the NAC and approved by the Minister of Finance.