The Government of Ethiopia passed the Financial Reporting Proclamation 847/2014 and following this the Council of Minsters passed Regulation 332/2014 that established the oversight Board – the Accounting and Auditing Board of Ethiopia (AABE). The Proclamation sets out financial reporting frameworks applicable to different reporting entities and mandated AABE with the responsibility of regulating the accountancy profession.

Applicable Financial Reporting Standards

The financial reporting standards to be used when preparing financial statements shall be 

1. International Financial Reporting Standards (IFRS); or 
2. International Financial Reporting Standards for Small and Medium Enterprises (IFRS for SMEs); 
3. International Public Sector Accounting Standards Applicable to Charities and Societies (IPSAS), 

issued by the International Accounting standards Board or its successor or issued by the International Public sector Accounting Standards Board or its successor, as adopted, adapted or amended by the Board: 

Applicable Auditing Standards

The Auditing Standards to be used by auditors in Ethiopia shall be the international standards for auditing (ISA) issued by the International Federation of Accountants (IFAC) or its successor, as adopted, adapted or amended by the Board.