Question

What are the current arrangements for setting and mandating accounting standards in Fiji ?

Answer 1

ANSWER: The current Fiji Accounting Standards is almost exclusively predicated on the IFRS and constitutes twenty three mandatory standards and eleven 'guidance standards'. According to Chand and Patel, the reasons for the issuance of the IFRSs as guidance standards are twofold. First certain standards may be irrelevant to Fiji. Example includes IAS 29, IAS 19, LAS 26 and IAS 29. Similarly, inappropriate LAS 19 and IAS 26 which relate to reporting entity sponsored pension scheme but there is no such employee benefits and retirement Benefit plans in Fiji. The council of Fiji Institute of Accountants approved the introduction of a FS5 million (USS3.25 million) turnover threshold for three categories of entity that would otherwise be required to follow IFRS, thereby allowing an option for smaller entities within those three categories to apply either or the current Fiji Accounting Standards Accounting standards for entities not required to follow IFRSs- Until such time the SME framework and standards is developed, the current suite of Fiji Accounting Standards will continue to be used by entities that are required to comply with IFRSs