|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||Currently permitted. IFRS Standards are being phased in through 2021, at which time IFRS Standards will be required for all public companies.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||Permitted.|
|The IFRS for SMEs Standard is required or permitted||IFRS for SMEs Standard adopted in its entirety as the Bhutan Accounting Standard for SMEs. Required for all unlisted companies.|
|The IFRS for SMEs Standard is under consideration|
This is laid out in the Finance Minister’s Executive Order of 16/02/2012 announcing the decision to adopt IFRS Standards and reasons for adopting IFRS Standards rather than developing national standards.
Bhutan has not adopted IFRS Standards. However in April 2012 it began a process of adopting IFRS Standards in three phases with the goal of achieving complete adoption by 2021.
See Executive Order above.
In July 2010, the government of Bhutan approved the formation of the Accounting and Auditing Standards Board of Bhutan (AASBB). The AASBB has authority to set Bhutanese accounting and auditing standards in line with international standards.
In 2012, the Ministry of Economic Affairs adopted a timetable for implementing IFRS Standards in three phases. See Q2 in the FAQ section of the AASBB's website
The AASBB has signed copyright waiver agreement with the IFRS Foundation to adopt IFRS Standards in a phased manner aiming for full adoption and compliance by the year 2021. The standards will be called Bhutanese Accounting Standards (BAS) during the transition period until 2021. The AASBB is releasing the standards in three phases. In the first phase, 18 standards were issued to be implemented from January 2013 till the end of 2015. The 18 phase-1 standards are:
|No.||BAS||IAS||Name of the Standards|
|1||BAS 01||IAS 01||Presentation of Financial Statements|
|2||BAS 02||IAS 02||Inventories|
|3||BAS 07||IAS 07||Cash Flow Statements|
|4||BAS 08||IAS 08||Accounting Policies, Change in Accounting Estimates and Errors|
|5||BAS 10||IAS 10||Events after the Balance Sheet Date|
|6||BAS 11||IAS 11||Construction Contracts|
|7||BAS 12||IAS 12||Income Taxes|
|8||BAS 16||IAS 16||Property, Plant & Equipment|
|9||BAS 18||IAS 18||Revenue|
|10||BAS 20||IAS 20||Accounting for Govt. Grants and Disclosure of Govt. Assistance|
|11||BAS 21||IAS 21||The Effects of Changes in Foreign Exchange Rates|
|12||BAS 23||IAS 23||Borrowing Costs|
|13||BAS 24||IAS 24||Related Party Disclosures|
|14||BAS 27||IAS 27||Consolidated and Separate Financial Statements|
|15||BAS 33||IAS 33||Earnings Per Share|
|16||BAS 34||IAS 34||Interim Financial Reporting|
|17||BAS 37||IAS 37||Provisions, Contingent Liabilities and Contingent Assets|
|18||BFRS 8||IFRS 8||Operating Segments|
Nine Phase II standards are adopted effective 1 January 2016, and ten Phase III standards (through IFRS 7 Financial Instruments Disclosures) are adopted e effective 1 January 2018.