|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies|
|IFRS Standards are permitted but not required for domestic public companies||Cayman Islands has not adopted any particular accounting framework as its national standards. IFRS Standards are permitted.|
|IFRS Standards are required or permitted for listings by foreign companies||Permitted.|
|The IFRS for SMEs Standard is required or permitted||Permitted.|
|The IFRS for SMEs Standard is under consideration|
Cayman Islands Society of Professional Accountants (CISPA)
Cayman Islands Monetary Authority (CIMA)
The CIMA has statutory authority to adopt accounting standards for all regulated companies in the Cayman Islands. The CISPA advises CIMA in this regard. Regulated companies include all companies subject to regulatory laws, including the Banks and Trust Companies Law, Insurance Law, Mutual Funds Law, and Companies Management Law. Those laws refer to generally accepted accounting principles but not a specific accounting framework. Only regulated entities must file financial statements with CIMA.For companies other than those regulated by CIMA, the Companies Law (2018 Revision) states that “every company shall cause to be kept proper books of account including, where applicable, material underlying documentation… Proper books of account shall not be deemed to be kept with respect to the matters aforesaid if there are not kept such books as are necessary to give a true and fair view of the state of the company’s affairs and to explain its transactions.” Companies other than those regulated by CIMA do not have to publish or file financial statements, and neither CIMA nor another government body provides oversight with respect to financial reporting by those companies.
The above-referenced laws may be found on the 'Laws and Regulations' page in the Regulatory Framework section of CIMA's website.
One accounting firm estimates that roughly 50 per cent of the companies use US GAAP, 40 per cent use IFRS Standards, and the remaining 10 per cent use other GAAPs, notably UK or Canadian GAAP.