The Board, AABE policy intention is to adopt the IFRS Accounting Standards issued by the International Accounting Standards Board (IASB). However, while the Financial Reporting and Auditing Standards Committee, (FRASC) will track closely the introduction of new IFRS Accounting Standards for possible adoption in Ethiopia, it will also take into account the local economic and business circumstances and context, as well as the entity to which the IFRS Accounting Standards, International Standards on Audit (ISA), IPSAS and International Ethics Standards would apply to.

The sub-committee adopts a formal and rigorous process in making or formulating accounting standards so as to ensure that the accounting standards made or formulated are of a consistent high quality. The various sectors and stakeholder groups are all given adequate opportunities to express their views.

The FRASC contributes actively to the IASB, through proactively surfacing views relating to local specific issues on the IASB’s projects for the IASB’s attention and consideration. These include participation at standard-setters meetings, reviewing and commenting on relevant IASB’s projects, and working with the IASB liaison representatives. The FRASC also sees the benefit of collaborating with national standard-setters in the region, such as through the Pan African Federation of Accountants (PAFA). The full listing of objectives of PAFA are available on the PAFA website.

Financial Reporting Standards

Effective for annual reporting period beginning on 1 January 2023

Financial Reporting Standards (International) refer to International Financial Reporting Standards (IFRS), IFRS for SME’s, International Public Sector Accounting Standard (IPSAS), International Auditing Standards (IAS), International Ethics Standards Board for Accountants (IESBA)Interpretations issued by the IFRS foundation-IASB, IPSASB.



Effective Date

Issuance Date

CMR 332/2014

Establishment and Determination of the Procedure of the Accounting and Auditing Board of Ethiopia Council of Ministers Regulation Page 7958
(PDF, 4.3MB) 

Refer to document

14th January 2015

Directive No.985/2024

Directive on how to account for change resulting from Asset Valuation or Adjustment upon and following the Adoption of IFRS.

Refer to document