(NBAA)
THE NATIONAL BOARD OF ACCOUNTANTS AND AUDITORS
TANZANIA
TECHNICAL PRONOUNCEMENT NO.1 OF 2018
SCOPE OF THE APPLICABILITY OF IFRSs, IPSASs, IFRS for SMESs AND FRSME
IN TANZANIA
Tanzania migrated to International Financial Reporting Standards (IFRSs) and International
Standards on Auditing (ISAs) with effect from 1 st July, 2004 and therefore, every
commercial entity in the country, whether small or large, was required to prepare its
financial statements in accordance with the IFRSs as the case may be.
Following the issuance of sufficient number of International Public Sector Accounting
Standards (IPSASs) by the International Public Sector Accounting Standards Board
(IPSASB) and independent International Financial Reporting Standards for Small and
Medium-sized Entities (IFRSs for SMEs) by the International Accounting Standards Board
(IASB) in July, 2009, NBAA issued Technical Pronouncement No. 3 of 2009 on the scope of
applicability of IFRSs, IPSASs and IFRS for SMEs.
The NBAA Governing Board in its 173 rd meeting approved the Financial Reporting
Standards for Micro Entity (FRSME).
NBAA (the Board) would like to inform the public that the scope of applicability of these
financial reporting standards will be as indicated below:
S/NO TYPE OF CATEGORY OF ENTITY
STANDARD
1. Full IFRSs I. Commercial entities which are Public Interest
Entities (PIEs) with any of the following
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characteristics:
a) Its debt or equity instruments are traded in a public
market or it is in the process of issuing such
instruments for trading in a public market (a domestic
or foreign stock exchange or an over-the-counter
market, including local and regional markets)
b) It holds assets in a fiduciary capacity for a broad
group of outsiders as one of its primary businesses.
This is typically the case for banks, credit unions,
insurance companies, securities brokers/dealers,
mutual funds and investment banks etc.
c) Commercial entities with total gross capital of not
less than TZS.50 billion and which have significant
influence in the provision of essential and strategic
goods and services to the public, including.
Commercial entities which generate, transmit and
sell electricity and related services;
Commercial entities which produce, import,
transport and distribute petroleum products and
natural gas;
Commercial entities which provide water,
sewerage sanitation and telecommunication
services;
Commercial entities which provide transport
services in wider area of the United Republic of
Tanzania;
Commercial entities which are involved in
extractive industry;
Commercial entities involved in food processing,
distribution and marketing; and
Commercial entities involved in communication
and entertainments:
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II. All Public Commercial Entities (PCEs)
2. IPSASs I. All public sector entities with the following
characteristics:
Are responsible for delivery of services to benefit
the public/or to redistribute income and wealth.
Mainly finance their activities, directly or indirectly
by means of taxes or transfer from other level of
government, social contribution, debt or fees.
Do not have a primary objective to make profit.
II. Political parties.
3. IFRS for SMEs Commercial entities which are not public interest entities
(not in category 1 above) and with annual turnover of
TZS.800 million or above and total assets of TZS.400
million or above.
4. FINANCIAL Entities which are not Public Interest Entities (PIEs) and
REPORTING
with at least two out of following thresholds:
STANDARDS FOR
MICRO ENTITIES a) Annual turnover not more than TZS.800 million;
b) Total assets not more than TZS.400 million; and
c) Average number of employees not more than 10.
The Board would like to direct that reporting entity in category 1 and 2 (Public Interest
Entities) shall be required to publish their financial statements in their respective websites and
in at least two newspapers of wider circulation, one in Swahili language and another in English
language.
These Accounting Frameworks for the preparation of Financial Statements were approved by
the NBAA Governing Board during its 175tth Ordinary meeting held on 26thSeptember 2018.
This pronouncement replaces the Technical Pronouncement No.3 of 2009 on the Scope of
Applicability of IFRSs, IPSASs and IFRSs for SMEs and Technical Pronouncement No. 1 of
2015 on the Scope of Applicability of IPSASs and IFRSs in public sector.
This Technical Pronouncement will become effective for the periods beginning on or after
1st April, 2019.
For further information, please contact:
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EXECUTIVE DIRECTOR
The National Board of Accountants and Auditors,
Mhasibu House, Bibi Titi Mohamed Street,
P.O. Box 5128,
DAR ES SALAAM
Tel: +255 22 2211890/9, Fax: +255 222151746,
Email: info@[Link], Website: [Link]
