Iran-IFRS-Profile

IFRS APPLICATION AROUND THE WORLD 

JURISDICTIONAL PROFILE: Iran (Islamic Republic of) 

Disclaimer: The information in this Profile is for general guidance only and may change from time to time. You should not act 

on the information in this Profile, and you should obtain specific professional advice to help you in making any decisions or in 

taking any action. If you believe that the information has changed or is incorrect, please contact us at ifrsapplication@ifrs.org. 

This Profile provides information about the application of IFRS Standards in the Islamic Republic of Iran (hereafter Iran). IFRS 

Standards are developed and issued in the public interest by the International Accounting Standards Board (the Board). The 

Board is the standard-setting body of the IFRS® Foundation, an independent, private sector, not-for-profit organisation. 

This Profile has been prepared by the IFRS Foundation based on information from various sources. The starting point was the 

answers provided by standard-setting and other relevant bodies in response to surveys that the Foundation conducted on the 

application of IFRS Standards around the world. The Foundation drafted the profile and invited the respondents to the survey 

and others (including regulators and international audit firms) to review the drafts, and their comments are reflected. 

The purpose of the IFRS Foundation’s Jurisdictional Profiles is to illustrate the extent of implementation of IFRS Standards 

across the globe only. The Profiles do not reflect the intellectual property licensing status of IFRS Standards within any given 

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Profile last updated: 15 December 2016 

PARTICIPANT IN THE IFRS FOUNDATION SURVEY ON APPLICATION OF IFRS STANDARDS 

Organisation 

Audit Organisation of Iran (AOI) 

Iranian Institute of Certified Accountants (IICA) 

Iranian Association of Certified Public Accountants (IACPA) 

Role of the organisation 

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. 

Website 

AOI: http://www.audit.org.ir 

IICA: http://iica.ir/ 

IACPA: http://www.iacpa.ir/ 

Email contact 

Mr Mousa Bozorg Asl: bozorgasl@audit.org.ir 

Copyright © IFRS Foundation 1

COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS 

Has the jurisdiction made a public 

commitment in support of moving towards 

a single set of high quality global 

accounting standards? 

Yes. 

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. 

Has the jurisdiction made a public 

commitment towards IFRS Standards as 

that single set of high quality global 

accounting standards? 

What is the jurisdiction's status of 

adoption? 

Yes. 

See above. 

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): 

http://www.audit.org.ir/WFrmPublicNewsView.aspx?ID=642 

Additional comments provided on the 

adoption status? 

If the jurisdiction has NOT made a public 

statement supporting the move towards a 

single set of accounting standards and/or 

towards IFRS Standards as that set of 

standards, explain the jurisdiction's general 

position towards the adoption of IFRS 

Standards in the jurisdiction. 

None. 

Not applicable. 

EXTENT OF IFRS APPLICATION 

For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction: 

Are all or some domestic companies whose 

securities trade in a public market either 

required or permitted to use IFRS 

Standards in their consolidated financial 

statements? 

IFRS Standards. 


If YES, are IFRS Standards REQUIRED or 

PERMITTED? 

Does that apply to ALL domestic companies 

whose securities trade in a public market, 

or only SOME? If some, which ones? 

Are IFRS Standards also required or 

permitted for more than the consolidated 

financial statements of companies whose 

securities trade in a public market? 

For instance, are IFRS Standards required or 

permitted in separate company financial 

statements of companies whose securities 

trade in a public market? 

For instance, are IFRS Standards required or 

permitted for companies whose securities 

do not trade in a public market? 

Required. 


Yes. 

No. Separate company financial statements must conform to Iranian National 

Accounting Standards. Separate company financial statements are used to 

report information to the tax authority. 

Yes. All banks, insurance companies, and other financial institutions, listed and 

unlisted, are required to follow IFRS Standards from the beginning of Iranian 

year 1395 (20 March 2016). 

If the jurisdiction currently does NOT 

require or permit the use of IFRS Standards 

for domestic companies whose securities 

trade in a public market, are there any 

plans to permit or require IFRS Standards 

for such companies in the future? 


For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction: 

Are all or some foreign companies whose 

securities trade in a public market either 

REQUIRED or PERMITTED to use IFRS 

Standards in their consolidated financial 

statements? 

If YES, are IFRS Standards REQUIRED or 

PERMITTED in such cases? 

Does that apply to ALL foreign companies 

whose securities trade in a public market, 

or only SOME? If some, which ones? 

Currently there are no foreign companies whose securities trade on the Tehran 

Stock Exchange. 



IFRS ENDORSEMENT 

Which IFRS Standards are required or 

permitted for domestic companies? 

The auditor's report and/or the basis of 

presentation footnotes states that financial 

statements have been prepared in 

conformity with: 

Does the auditor's report and/or the basis of 

preparation footnote allow for ‘dual 

reporting’ (conformity with both IFRS 

Standards and the jurisdiction’s GAAP)? 

Are IFRS Standards incorporated into law or 

regulations? 

IFRS Standards as issued by the IASB Board, with two optional modifications. 

IFRS Standards as endorsed in the Islamic Republic of Iran. If a company does 

not use the optional modifications, its audit report will state compliance with 

IFRS Standards without referring to endorsement. 

No. 

Yes. See above. 


If yes, how does that process work? 

If no, how do IFRS Standards become a 

requirement in the jurisdiction? 

Does the jurisdiction have a formal process 

for the 'endorsement' or 'adoption' of new 

or amended IFRS Standards (including 

Interpretations) in place? 

If yes, what is the process? 

If no, how do new or amended IFRS 

Standards become a requirement in the 

jurisdiction? 

Has the jurisdiction eliminated any 

accounting policy options permitted by IFRS 

Standards and/or made any modifications to 

any IFRS Standards? 

If yes, what are the changes? 

See above. 


No. 


The Audit Organisation of Iran has adopted IFRS Standards for specified 

companies. Endorsement of individual new or amended IFRS Standards is not 

necessary. 

Yes. 

The AOI has made two modifications of IFRS Standards that are optional – that 

is, companies may use IFRS Standards without the modifications: 

1. 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. 

2. 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. 

Other comments regarding the use of IFRS 

Standards in the jurisdiction? 

None. 

TRANSLATION OF IFRS STANDARDS 

Are IFRS Standards translated into the local 

language? 

If they are translated, what is the 

translation process? In particular, does this 

process ensure an ongoing translation of 

the latest updates to IFRS Standards? 

IFRS Standards (‘Blue Book’) have been translated into Farsi, the national 

language of Iran. 

The translation follows the official IFRS Foundation translation process. 

APPLICATION OF THE IFRS FOR SMEs STANDARD 

Has the jurisdiction adopted the IFRS for 

SMEs Standard for at least some SMEs? 

If no, is the adoption of the IFRS for SMEs 

Standard under consideration? 

Did the jurisdiction make any modifications 

to the IFRS for SMEs Standard? 

If the jurisdiction has made any 

modifications, what are those 

modifications? 

No. 

Yes, it is under consideration. 




Which SMEs use the IFRS for SMEs 

Standard in the jurisdiction, and are they 

required or permitted to do so? 

For those SMEs that are not required to use 

the IFRS for SMEs Standard, what other 

accounting framework do they use? 

Other comments regarding use of the IFRS 

for SMEs Standard? 

All SMEs are required to use Iranian National Accounting Standards. 


None.

Iran-IFRS-Profile

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