Mozambique to have new business accounting system as of January 2010

30 November 2009

Maputo, Mozambique, 30 Nov – The International Financial Reporting Standards (IFRS), to which Mozambique signed up, will be introduced in the country’s large companies on 1 January 2010 and a year later into medium-sized companies, according to Mozambican newspaper Notícias.

The paper added that the banking and insurance systems would not be covered in this process as they are regulated by specific international accounting standards.

On presenting, a few days ago, the new accounting system for Mozambique’s business sector, as well as the reviewed legal framework following signing up for the IFRS, the president of the Mozambican Tributary Authority said that its introduction would provide greater transparency and comparability of financial information, between the State, state or private companies and the public at large.

Rosário Fernandes also said that the new system made it easier to interact, audit and provide a better environment for control, evaluation and intervention, including mechanisms of reconciliation and compensation, when and wherever necessary, between those involved in business, including the State.

The dossiers, which were published at the time, were the result of a long process of transition and execution of the standards, begun in March, 2008, after a contract was signed with Ernst Young in February of the same year, following an international tender launched by the Finance Ministry in July 200, and for which 11 companies put forward proposals. (macauhub)