Fiji

Corporate financial reporting requirements for all companies in Fiji, private and public, are outlined in the Companies Act of 1984 (revised in 2015). The Act requires that all companies apply accounting and auditing standards as issued by the Fiji Institute of Accountants (FIA). The amendments to the Act in 2015 introduced a differentiated financial reporting framework, distinguishing between the types of companies based on their size.

The FIA has adopted International Financial Reporting Standards (IFRS) and IFRS for Small and Medium-sized entities (IFRS for SMEs) to be applied in the preparation of financial statements. IFRS have been required for application since 2007 by large private companies and public companies as defined under the Companies Act. In addition, banking and financial institutions, companies that are majority-owned by the government, superannuation funds, insurance companies, and insurance broking entities are also required to apply IFRS. IFRS for SMEs is required for application by small and medium private companies effective January 2011, superseding previously effective Fiji Accounting Standards.

Under the Companies Act of 1984 (revised in 2015), public companies, medium and large private companies in Fiji are required to have their financial statements audited. Audits are to be conducted in accordance with the Clarified International Standards on Auditing as adopted by the FIA.

The accountancy profession in Fiji is self-regulated by the Fiji Institute of Accountants (FIA). Established under the Fiji Institute of Accountants Act of 1971 (FIA Act), the FIA’s responsibilities are set out in the act and include maintaining a registry of all professional accountants, regulating the profession by enforcing professional conduct, setting applicable auditing and accounting standards, setting initial professional development and continuing professional development requirements, and establishing an investigative and disciplinary (I&D) system. In addition, as established under its bylaws, the FIA is responsible for establishing ethical requirements for its members. The FIA reports, as there is a requirement for audit practitioners to be independently reviewed, the institute has developed a Peer Review program for members who hold a Certificate of Public Practice (CPP).

The FIA Act provides for the following categories of accountants in Fiji: Chartered Accountants (CAs), Licensed Accountants, or Affiliate Accountants. Candidates who pursue the pathway to become CAs start out as either Provisional Members (degree holders) or Affiliate Accountants (diploma holders) before completing courses and practical experience requirements as prescribed by the FIA to qualify as a Chartered Accountant. Audits in Fiji can only be conducted by CAs who hold a CPP. CAs who hold a CPP are required to be members of the FIA and in addition, are required to be registered with the Ministry of Justice.

University degrees must be locally obtained as overseas degrees are not accepted unless they have been assessed by a local university in Fiji. Individuals who obtain their qualifications from an overseas body can also become members of FIA as long as their mother institutes are recognized by the FIA.

There are no independent audit oversight arrangements in Fiji. The Fiji Institute of Accountants Act of 1971 (FIA Act) authorizes the Fiji Institute of Accountants (FIA) to regulate the audit profession. Audits in Fiji can only be conducted by Chartered Accountants (CAs) who hold a Certificate of Public Practice (CPP). CAs who hold a CPP are required to be members of the FIA and in addition, are required to be registered with the Ministry of Justice.

The FIA Act established the FIA and its functions, which include maintaining a registry of accountants, regulating the profession by enforcing professional conduct, setting applicable auditing and accounting standards, setting initial professional development and continuing professional development requirements, and establishing an investigative and disciplinary system. In addition, as established under its bylaws, the FIA is responsible for establishing ethical requirements for its members. The FIA reports that as there is a requirement for audit practitioners to be independently reviewed, the institute has developed a Peer Review program for members who hold a CPP.

The Fiji Institute of Accountants (FIA) was established under the Fiji Institute of Accountants Act of 1971 (FIA Act) and is the only professional accountancy organization in Fiji. The FIA Act establishes the functions of FIA, which include maintaining a registry of all professional accountants, regulating the profession by enforcing professional conduct, setting applicable auditing and accounting standards, setting initial professional development and continuing professional development requirements, and establishing an investigative and disciplinary system. In addition, as established under its bylaws, the FIA is responsible for establishing ethical requirements for its members. The FIA reports, as there is a requirement for audit practitioners to be independently reviewed, the institute has developed a Peer Review program for members who hold a Certificate of Public Practice (CPP). Audits in Fiji can only be conducted by Chartered Accountants (CAs) who hold a CPP. CAs who hold a CPP are required to be members of the FIA and in addition, are required to be registered with the Ministry of Justice.

In addition to being a member of IFAC, the FIA is a member of the Confederation of Asian and Pacific Accountants.

The Fiji Institute of Accountants (FIA) reports that there is requirement for audit practitioners to be independently reviewed, and the institute has developed a Peer Review program for all auditors.

FIA’s Peer Review Program commenced its first reviews in 2013 and the initial phase of the program concluded in September 2015. The FIA reports that it has commenced a new round of reviews starting January 2017 with an estimated completion date of 2019.

In June 2017, the FIA conducted a review of its Peer Review program against the requirements of SMO 1 and has identified that its system is aligned with the requirements of SMO 1.

Current Status: Adopted

The Fiji Institute of Accountants Act of 1971 establishes initial professional development and continuing professional development requirements for professional accountants and authorizes the Fiji Institute of Accountants (FIA) to implement the requirements. As reported in its 2017 SMO Action Plan, the FIA has identified that IES 6 is not currently adopted, and it is unclear if the overall program is aligned with the other IES requirements.

Current Status: Partially Adopted

Under the Fiji Institute of Accountants Act of 1971, the Fiji Institute of Accountants (FIA) is responsible for adopting auditing standards. The institute’s Accounting and Auditing Standards Committee has adopted the 2009 ISA for application in all mandatory audits. It is unclear if there are plans by the FIA to adopt the new ISA, effective December 2016.

Current Status: Partially Adopted

As per its by-laws, the Fiji Institute of Accountants is responsible for establishing ethical requirements for its members. According to its website, the institute has adopted the 2012 IESBA Code for application by its members.

Current Status: Adopted

The Fiji Institute of Accountants reports that, since 2009, the Auditor General of Fiji has adopted cash-basis IPSAS, and that there are no plans to move to accrual-basis IPSAS.

Since 2007, government majority owned companies, and government entities established under their own statute with an annual turnover of at least FJD 5 million are required to apply IFRS during the preparation of their financial statements.

Current Status: Partially Adopted

Under the Fiji Institute of Accountants Act of 1971 (FIA Act), the Fiji Institute of Accountants’ (FIA) is responsible for establishing an investigative and disciplinary (I&D) system for its members. The FIA Act outlines the rules and provisions that pertain to how the FIA handles complaints against members. The FIA has established both an Investigation and Disciplinary Committee to undertake the various functions of the I&D process, and the functions of both committees are also outlined in the FIA Act. The Investigation Committee is responsible for investigating complaints against FIA members, while the Disciplinary Committee has the powers to censure members, suspend members, impose financial penalties, and remove members from the registry of members.

To this effect, although the FIA has established an I&D system for its members, it has identified, through a recent review, that its system is not aligned with elements of SMO 6. Areas that do not align with the requirements include: (i) I&D is not linked with results of QA reviews; (ii) members of the disciplinary committee do not include a mix of professional accountants and non-accountants; (iii) timeframe targets for disposal of all cases are not set; (iv) no process exists for independent review of complaints where there is no follow-up; (v) results of investigative and disciplinary proceedings are not made available to the public; and (vi) there is not process for liaising with outside bodies on serious crimes and offences. While the FIA has indicated that the composition of its disciplinary committee will be addressed in the redraft, it is not clear if there are plans to address the other gaps identified.

In 2006, the FIA submitted proposed amendments to the FIA Act and FIA Rules to the Fiji government in order to address areas in its disciplinary process that required improvements, such as the composition of its Investigation and Disciplinary Committees. The FIA reports that due to a military coup in December 2006, and the fact that Fiji has only had an elected parliament since October 2014, these changes have not been approved. As of June 2017, the FIA reports that the State Law Office is undergoing a redraft of the FIA Act to incorporate the proposed amendments by the FIA. While the FIA has indicated that the composition of its disciplinary committee will be addressed in the redraft, it is not clear if there are plans to address other gaps identified.

Current Status: Partially Adopted

The Companies Act of 1984 (revised in 2015) establishes corporate financial reporting requirements for all companies in Fiji and requires the application of accounting standards as issued by the Fiji Institute of Accountants (FIA). The amendments to the Act in 2015 introduced a differentiated financial reporting framework, distinguishing between the types of companies based on their size.

Under the Fiji Institute of Accountants Act of 1971, the FIA has adopted the most recent IFRS and IFRS for Small- and Medium-sized entities (SMEs) to be applied in the preparation of financial statements.

IFRS have been required for application since 2007 by large private companies and public companies as defined under the Companies Act. In addition, banking and financial institutions, companies that are majority-owned by the government, superannuation funds, insurance companies, and insurance broking entities are also required to apply IFRS. IFRS for SMEs is required for application by small and medium private companies effective January 2011, superseding previously effective Fiji Accounting Standards.

Current Status: Adopted

Relevant Organizations

• Fiji Institute of Accountants (FIA)

Relevant Legislation

• Fiji Companies Act, 2015
• Fiji Institute of Accountants Act, 1971
• Fiji Institute of Accountants By-Laws

Relevant Publications

• Fiji Institute of Accountants, 2014 Annual Report.
• Fiji Institute of Accountants, SMO Action Plan, July 2017.
• IFRS Foundation, “IFRS Application Around the World?Jurisdictional Profile: Fiji,” June 2016.
• Pacific Legal Network, “Fiji Companies Act 2015: What it means,” March 2016.