Bahamas

The financial reporting framework in the Commonwealth of The Bahamas is set out in the Bahamas Institute of Chartered Accountants (BICA) Act, 2015 (the Act), which sets out the obligations for maintaining financial records established under the Companies Act of 1992 and the International Business Companies Act of 2010. The acts contain basic requirements for financial reporting by all companies and set requirements for the preparation of financial statements. There is no requirement to publish financial statements.

The Act and its accompanying Regulations require all financial statements to be prepared and audited in accordance with IFRS and ISA, respectively. Companies incorporated under the Companies Act must appoint auditors unless the shareholders unanimously agree to waive this requirement. Only Licensed Practitioners, who are members of BICA, have the legal authority to sign audit reports on financial statements.

Prior to 2015, the accountancy profession was regulated by the Public Accountants Act of 1991 and the Public Accountants Regulation (Rules of Professional Conduct) of 1993. In 2015, The Bahamas Institute of Chartered Accountants (BICA) Act (the BICA Act) repealed and replaced the previous legislation.

As of 2016, the BICA Act regulates the accountancy profession, defines professional accountants, establishes the requirements for entry into the profession, promotes the best standards of practice in financial reporting and in the expression of professional opinions, and authorizes BICA to register and license professionals wishing to practice accountancy. Under the BICA Act, professional accountants are defined as persons registered as a members, associates, students, or licensees.

BICA’s membership comprises two membership categories: General Members and Licensed Practitioners. General Members may use the designation of Chartered Accountant. Licensed Practitioners have the legal authority to sign audit reports on financial statements and are required to be BICA members. BICA licenses and maintains a register of licensed practitioners.

BICA does not have its own qualification program and accepts candidates from the following certifying bodies as specified in the Act:

• American Institute of Certified Public Accountants (AICPA);
• Chartered Professional Accountants of Canada (CPA Canada);
• Association of Chartered Certified Accountants (ACCA); and
• Institute of Chartered Accountants in England and Wales (ICAEW).

BICA’s mandate includes establishing ethical requirements, carrying out investigation and disciplinary processes for its members, and conducting quality assurance reviews for its licensees.

Accountants who are employed by business entities, government, academia, and other entities are not required to be members of BICA and are not subject to its regulation and oversight.

The profession is self-regulated and there is no independent audit oversight body in the Commonwealth of The Bahamas. However, Licensed Practitioners, who have the legal authority to sign audit reports on financial statements, must be members of the Bahamas Institute of Chartered Accountants and are subject to the institute’s ethical requirements, investigation, and disciplinary processes, and quality assurance reviews.

The Bahamas Institute of Chartered Accountants (BICA), established in 1971, regulates its accountancy profession in accordance with the BICA Act of 2015 (the Act). The Act empowers BICA, among other responsibilities, to define professional accountants; establish the requirements for entry into the profession; promote the best standards of practice in financial reporting and in the expression of professional opinions; establish ethical requirements; carry out investigation and disciplinary processes for its members, as well as quality assurance reviews for licensees; and register and license professionals wishing to practice accountancy.

BICA has two membership categories: General Members and Licensed Practitioners. General Members may use the designation of Chartered Accountant. Licensed Practitioners have the legal authority to sign audit reports on financial statements and are required to be BICA members.

BICA does not have its own qualification program and accepts candidates from the following certifying bodies as specified in the Act:

• American Institute of Certified Public Accountants (AICPA);
• Chartered Professional Accountants of Canada (CPA Canada);
• Association of Chartered Certified Accountants (ACCA); and
• Institute of Chartered Accountants in England and Wales (ICAEW).

BICA is a member of the Institute of Chartered Accountants of the Caribbean (ICAC).

In accordance with The Bahamas Institute of Chartered Accountants (BICA) Act of 2015 (the Act), all auditors (Licensed Practitioners) are required to be BICA members and are subject to quality assurance (QA) reviews. In line with this requirement, BICA has adopted a QA review system that is in line with SMO 1 requirements, and began Practice Monitoring through a tripartite contract with the Institute of Chartered Accountants of the Caribbean and the Association of Chartered Certified Accountants. The review visits began during Spring of 2016 following the enactment of the Regulations.

ISQM 1 and ISQM 2 are adopted in the jurisdiction.

Current Status: Adopted

The Bahamas Institute of Chartered Accountants (BICA) Act of 2015 defines the requirements for entry into the profession in the Commonwealth of The Bahamas (The Bahamas). The Act grants authority to BICA to implement those requirements.

A candidate must be a certified member of one of the following foreign organizations to become a member of BICA: the American Institute of Certified Public Accountants, the Chartered Professional Accountants of Canada, the Chartered Association of Certified Accountants, or the Institute of Chartered Accountants in England and Wales. All these bodies require their members to complete a professional accountancy education program, obtain practical experience, pass a final examination, and maintain continuing professional development (CPD). There is no examination on local tax and business laws in The Bahamas.

BICA has implemented mandatory CPD requirements for its members that are aligned with the revised IES.

Current Status: Partially Adopted

Prior to 2015, the Public Accountants Act of 1991 and the Public Accountants Regulation (Rules of Professional Conduct) of 1993 required application of ISA in all statutory audits.

In 2015, The Bahamas Institute of Chartered Accountants (BICA) Act of 2015 was adopted, which delegated to BICA the responsibility to promote the best standards of practice in financial reporting and in the expression of professional opinions. In line with this responsibility, BICA developed BICA Regulations that require the application of ISAs for all statutory audits which have been published in the Official Gazette.

As of the date of this assessment, the 2023-2024 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, is applicable in the jurisdiction.

Current Status: Adopted

The Bahamas Institute of Chartered Accountants (BICA), empowered by BICA Act of 2015, is responsible for setting ethical requirements for its members. Prior to the adoption of the BICA Act, BICA had adopted the 2013 IESBA Code of Ethics for application by its members.

In line with this responsibility, BICA published BICA Regulations in the Official Gazette that require application of the IESBA Code of Ethics and permit BICA to incorporate amendments on an ongoing basis.

As of the date of this assessment, the 2022 International Code of Ethics is applicable in the jurisdiction.

Current Status: Adopted

The Ministry of Finance is responsible for setting public sector accounting standards in accordance the Financial Administration and Audit Act of 2010. The current public sector accounting standards are cash-based. The government has not adopted IPSASs. The Caribbean Regional Technical Assistance Centre’s technical assistance program is in progress to assist The Bahamas in moving toward the adoption of IPSAS (five phases) for government financial reporting by 2026.

Current Status: Not Adopted

The BICA Act of 2015 requires BICA to establish a system for the investigation and discipline (I&D) of its members.

BICA’s Council has the authority to initiate investigations. Guidelines are provided to define infractions and associated penalties, which include specific monetary fines. Membership and Chair roles within each committee have a tenure of two years, renewable for an additional two-year period. An independent Appeal Committee is established, separate from the Council, with members receiving a stipend for their service. BICA holds the authority to inform relevant stakeholders, including other institutes recognized by BICA, of the outcomes of disciplinary actions.

BICA reports in its 2021 SMO Action Plan that it has established an I&D system that is in line with SMO 6 requirements and is operational.

Current Status: Adopted

Prior to 2015, the Public Accountants Act of 1991 and the Rules of Professional Conduct of 1993 required application of IFRS as issued by the IASB for the preparation of financial statements.

The Bahamas Institute of Chartered Accountants (BICA) Act of 2015 delegated to BICA the responsibility to promote the best standards of practice in financial reporting and in the expression of professional opinions. In line with this responsibility, BICA published BICA Regulations in the Official Gazette that require the application of IFRS.

Current Status: Adopted

Relevant Organizations

• Bahamas Institute of Chartered Accountants (BICA)

Relevant Legislation

• Bahamas Institute of Chartered Accountants Act, 2015
• Public Accountants Act, 1991
• Public Accountants Regulation (Rules of Professional Conduct), 1993

Relevant Publications

• BICA, SMO Action Plan, Month YEAR.
• International Monetary Fund, The Bahamas: Financial Sector Stability Assessment, 2013.
• IFRS Foundation, “IFRS Application Around the World—Jurisdictional Profile: Bahamas,” June 2016.