|Extent of IFRS application||Status||Additional Information|
|IFRS Accounting Standards are required for domestic public companies||IFRS Standards are required for listed companies and financial institutions. However, there is a time delay between the IASB issuing a new or amended IFRS Accounting Standard and adoption at national level due to translation, harmonisation with tax laws and other processes in the jurisdiction.|
|IFRS Accounting Standards are permitted but not required for domestic public companies|
|IFRS Accounting Standards are required or permitted for listings by foreign companies||IFRS Standards are required, but see above.|
|The IFRS for SMEs Accounting Standard is required or permitted||No. All legal entities are required to use full IFRS Standards.|
|The IFRS for SMEs Accounting Standard is under consideration|
Profile last updated: 21 April 2023
Institute of Certified Accountants of Montenegro (ICAM)
Ministry of Finance of Montenegro
Yes. Article 5 of the Law on Accounting (Official Gazette of Montenegro, № 145/21 of December 31, 2021, № 152/22 of December 30, 2022) states:
‘Legal entities shall compile financial statements in compliance with the International Accounting Standards (IAS), or the International Financial Reporting Standards (IFRS), as promulgated by the IASB, and adopted and published by the Competent Authority (the Ministry of Finance) that obtained a translation and publishing copyright from the Foundation’.
There is a time delay between the IASB issuing a new or amended IFRS Accounting Standard and obligatory adoption at national level, due to translation, harmonisation with tax laws and other processes in the local jurisdiction.
The latest translation of IFRS Accounting Standards officially applied in Montenegro is IFRS Accounting Standards as issued in 2020. Application of some Standards is delayed (e.g.: IFRS 9 and IFRS 15).
All domestic companies are required to comply with IFRS Accounting Standards as adopted and published by the Competent Authority.
Credit institutions (banks) in Montenegro are required to apply IFRS Accounting Standards as issued by IASB.
All foreign companies are required to apply IFRS Accounting Standards as adopted and published by the Competent Authority in their consolidated financial statements.