Instructions on Accounting and Auditing Obligations for Nonprofit Organizations

On 15th March 2022, The Accounting and Auditing Regulator issued the Instructions on Accounting and auditing obligations for nonprofit organizations, regulations will be in force for nonprofit organizations from 2022 onward.

The organization has the obligation to:

1. Have accounting records and prepare the financial report in accordance with Cambodian Financial Reporting Standards for Nonprofits. In the case the organization implements the International Financial Reporting Standards of Cambodia or International Financial Reporting Standards of Cambodia for Small and Medium Enterprises, the organization must notify in writing the Accounting and Auditing Regulator in advance.

2. Submit the annual financial reporting to the Accounting and Auditing Regulator by the following deadline:
2.1. the organization that has an independent audit in accordance with the law need to submit their independently audited financial report to the Accounting and Auditing Regulator no later than 6months and 15days from the date of accounting close.
2.2. the organization that does not have an independent audit in accordance with the law need to submit their annual financial report no later than 3 months and 15 days from the date of accounting close.
On the other hand, the submission of financial report to the Accounting and Auditing Regulator for the year 2021 to be implemented in 2022 will be provided extra 60 days.

3. Request for approval from the Accounting and Auditing Regulator on the date to close the financial report other than 31st December as determined in the law on Accounting and Auditing. The organization established before this instruction need to request this approval no later than 30th June 2022. The organization established after this instruction need to request this approval no later than 3 months after registering with relevant ministry.

4. Inform the Accounting and Auditing Regulator of the language that is used in the financial computer system or related computer system if the organization in the requirement listed in Circular 009 dated 1 September 2021 of the Ministry of Economy and Finance. The registered organization must inform the Accounting and Auditing Regulator of the use of English in the financial computer system or related computer system from the date of this instruction till 30th April 2022. The new organization, must inform the Accounting and Auditing Regulator of the use of English in the financial computer system or related computer system no later than 60 days after registering with the relevant ministry.

5. Use the E-filling System of the Accounting and Auditing Regulator to submit the annual financial report to the Accounting and Auditing Regulator, and pay for the administration fee in accordance with Prakas 001 to be issued on 12 April 2022.

For failure to comply with the above obligation, the organization will face penalties under sub-decree 79 dated 1st June 2020 on the Transitional Penalties for the violation of the Law on Accounting and Audit.

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