|Extent of IFRS application||Status||Additional Information|
|IFRS Accounting Standards are required for domestic public companies||All listed companies, banks, insurance companies, and other financial institutions are required to use IFRS Standards.|
|IFRS Accounting Standards are permitted but not required for domestic public companies|
|IFRS Accounting Standards are required or permitted for listings by foreign companies||Currently there are no foreign companies whose securities trade on the Tehran Stock Exchange.|
|The IFRS for SMEs Accounting Standard is required or permitted||No. Currently, all SMEs are required to use Iranian National Accounting Standards.|
|The IFRS for SMEs Accounting Standard is under consideration||Yes.|
Profile last updated: 15 December 2016
Audit Organisation of Iran (AOI).
Iranian Institute of Certified Accountants (IICA).
Iranian Association of Certified Public Accountants (IACPA).
The Audit Organisation of Iran is recognised by law as the body to adopt accounting standards in Iran.
The IICA and the IACPA are professional associations of accountants in Iran.
By requiring banks, insurance companies, other financial institutions, and listed companies to apply IFRS Standards, the Audit Organisation of Iran has demonstrated that Iran has made a public commitment to global accounting standards, and to IFRS Standards as those standards.
The AOI requires large listed companies to apply IFRS Standards (with two optional modifications) starting with Iranian year 1395, which is the financial year beginning 20 March 2016 according to the Gregorian calendar.
Other listed companies are permitted, but not required, to adopt IFRS Standards (with two optional modifications) from 1395. Such companies will be required to apply IFRS Standards (with two modifications) from 1396 (that is, financial years beginning March 2017). The Securities and Exchange Organization of Iran (the securities regulator) will announce criteria for identifying large listed companies.
There are approximately 320 companies listed on the Tehran Stock Exchange. In addition, approximately 120 companies trade on the Iran Fara Bourse.
The AOI requires that all banks, insurance companies, and other financial institutions (whether listed or not) to use IFRS Standards from the beginning of Iranian year 1395 (20 March 2016).
Unlisted companies are required to follow Iranian National Standards for the present, but the AOI has indicated a longer-term plan to require IFRS Standards as well.
See statement on the website of the AOI (in Farsi).
The AOI has made two modifications of IFRS Standards that are optional – that is, companies may use IFRS Standards without the modifications:
Goodwill is amortised over its useful life but not more than 20 years, and also subject to write-down if impairment is indicated. Under IFRS 3 Business Combinations, the recoverable amount of goodwill must be measured each year and, if it is below the carrying amount, an impairment loss must be recognised.
Investments in unquoted equity instruments are measured at cost, subject to write-down if impairment is indicated. Under IFRS 9 Financial Instruments, such investments are measured at fair value.