Morocco

Accounting Framework

The Conseil National de la Comptabilité (CNC), established by decree in 1989, is mandated by Law 15-89 of January 1993 (enacted by Dahir 1-92-139 of 14 Rejab 1413) to set accounting standards. The CNC has adopted Moroccan Generally Accepted Accounting Principles (GAAP) which differ significantly from IFRS. However, the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) reports that the World Bank initiated an IFRS Conversion Project in 2020 with CNC. OEC Morocco reports that it is expecting Moroccan GAAP to mostly converge with IFRS and IFRS for SME once the project is complete.

The Central Bank of Morocco (Bank Al Maghrib) is responsible for issuing accounting standards for banks and financial institutions. Circular 56/G/2007 issued by Bank Al Maghrib requires that all entities under its supervision use IFRS for accounting periods beginning January 2008.

The Moroccan Capital Market Authority (AMMC) is responsible for issuing financial reporting for public companies. Public companies are defined as: (i) any listed company; (ii) any company that engages in advertising to sell its stock; and (iii) any company with more than 100 shareholders. Circular No. 06/05 of 2007 reaffirms the Moroccan Stock Exchange Law (Law No. 52-01) which stipulates that all companies listed on the Casablanca Stock Exchange, other than banks and similar financial institutions, can choose between IFRS and Moroccan GAAP. In practice, most public companies are using IFRS.

The Insurance regulator (ACAPS) oversees financial reporting for insurance companies. Starting from December 1, 2022, insurance and reinsurance companies are required to publish their financial statements and corporate accounts in accordance with IFRS as issued by IASB. These financial statements must be certified by auditors who are members of OEC Morocco.

Auditing Framework

The Companies Law of 1999 (Law on Corporations 17-95) requires audits for public companies, banks, insurance companies, and all other companies with an annual turnover of more than 50 million MAD. Public companies, banks, and insurance companies must appoint two auditors to conduct audits. Article 160 of Law 17-95 stipulates that audits must be conducted by a certified member of OEC-Morocco.

OEC-Morocco is responsible for establishing auditing standards to be applied in all mandatory audits in Morocco. OEC-Morocco has adopted Moroccan Standards on Auditing which are converged with the latest ISA and other IAASB pronouncements translated into French, on an ongoing basis. The 2022 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, Volume I and II is the latest version available in French as of the date of this assessment.

Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413 regulates the profession of Chartered Accountants and establishes the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) as the regulatory body.

Under Law 15-89, the institute is responsible for: (i) maintaining a public registry for members; (ii) establishing continuing professional development (CPD) requirements for members; (iii) establishing auditing standards; (iv) establishing ethical requirements; (v) establishing and conducting audit quality assurance (QA) reviews; (vi) investigating and disciplining its members for misconduct and breach of professional rules.

Requirements for entering the accounting and auditing profession are outlined in Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413, including the procedures for certification, licensing, and registration.

The Advanced Institute of Commerce and Business Administration (Institut Supérieur de Commerce et d’Administration des Entreprises), a public institution attached to the Ministry of Commerce and Industry, prepares candidates for entry into the profession. The program is open to individuals who have completed specific bachelor’s degrees outlined in Decree No. 2.89.519. The program consists of (i) a three-year curriculum, with an examination after each year, (ii) a three-year professional internship throughout the program; and (iii) the preparation and defense of a dissertation after successfully completing the program.

Those who successfully passed the program are eligible to register with OEC-Morocco and practice accounting or auditing with the Chartered Accountant title. All Chartered Accountants must remain members in good standing of OEC-Morocco in order practice, which means that they must pay annual membership fees, adhere to the institute’s code of conduct, and fulfill continuing professional development requirements.

There is no independent audit oversight authority. Auditors are regulated by the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) in accordance with Law 15-89 as described in the Regulation section. In accordance with Article 160 of Law 17- 95, only OEC-Morocco members can conduct audits. OEC-Morocco reports that it is working with relevant authorities to establish an oversight body.

Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco)

Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413 established the OEC-Morocco. Membership of the institute is comprised of Chartered Accountants and mandatory to practice accounting or auditing.

Under Law 15-89, the institute is responsible for: (i) maintaining a public registry for members; (ii) establishing continuing professional development requirements for members; (iii) establishing auditing standards; (iv) establishing ethical requirements; (v) establishing and conducting audit quality assurance reviews; (vi) investigating and disciplining its members for misconduct and breach of professional rules.

In addition to being a member of IFAC, OEC-Morocco is also a member of the Pan African Federation of Accountants, the Federation of Mediterranean Certified Accountants, and the International Federation of Francophone Accountants.

According to Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413, the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for the establishment of a mandatory quality assurance (QA) review system for all audits of financial statements.

OEC Morocco reports that its QA system incorporates the main requirements of SMO 1. However, as of the date of this assessment, OEC Morocco reports that ISQM 1 & 2 are not fully adopted in the jurisdiction, and implementation is expected to be completed by 2026.

Current Status: Partially Adopted

Initial professional development requirements are set by Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413 and the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for implementing the initial professional development (IPD) requirements in addition to setting and monitoring members’ compliance with continuing professional development (CPD) requirements.

The Advanced Institute of Commerce and Business Administration (Institut Supérieur de Commerce et d’Administration des Entreprises), a public institution attached to the Ministry of Commerce and Industry, prepares candidates for entry into the profession. The program is open to individuals who have completed specific bachelor’s degrees outlined in Decree No. 2.89.519. The program consists of (i) a three-year curriculum, with an examination after each year, (ii) a three-year professional internship throughout the program; and (iii) the preparation and defense of a dissertation after successfully completing the program.

Those who successfully pass the program are eligible to register with OEC-Morocco and practice accounting or auditing with the Chartered Accountant title.

All Chartered Accountants must remain members in good standing of OEC-Morocco in order practice, which includes fulfilling continuing professional development requirements. The institute states that its CPD requirements are in line with the revised IES 7 requirements where OEC Morocco requires the completion of 120 hours of CPD over a three-year period. Out of the 120 hours, 60 hours must be verifiable, with a minimum of 20 hours to be reported to the Regional Council annually to remain in the registry. OEC Morocco members that do not fulfill the CPD requirements are referred to the Disciplinary Board to be sanctioned in line with internal regulations.

OEC-Morocco reports in its Action Plan that the IES requirements were taken into consideration in the revision of local training standards and reports overall alignment with the 2019 IES.

Current Status: Adopted

The Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for establishing auditing standards to be applied in all mandatory audits in Morocco under Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413.

OEC-Morocco has adopted Moroccan Standards on Auditing which are converged with the 2016-2017 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements.

Current Status: Partially Adopted

Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for adopting ethical requirements in accordance with Law 15-89 1993 enacted by by Dahir 1-92-139 of 14 Rejab 1413.

OEC-Morocco reports that it has adopted its own Code of Ethics that is based on the 2009 IESBA Code of Ethics.

Current Status: Partially Adopted

The Conseil National de la Comptabilité (CNC) is mandated to adopt public sector accounting standards in Morocco. In 2007, the CNC with the assistance of French consultants, began working on testing implementation of IPSAS for the General Treasury of Morocco. Subsequently, the CNC approved the new General Treasury of Morocco’s State Chart of Accountants, which is aligned with accrual-basis IPSAS, issued in December 2008. No other public sector accounting standards have been adopted since then and there are no further plans to update the Treasury’s standards or adopt IPSAS at other levels of government.

Current Status: Partially Adopted

In accordance with Law 15-89, the National and Regional Councils of the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) has direct responsibility for the investigation and discipline (I&D) of all practicing professional accountants in the jurisdiction.

Over the past five years, OEC-Morocco reports to have processed 27 complaints. In 2021, OEC-Morocco conducted a self-assessment of its I&D system against SMO 6 requirements and reports that its revised procedures are partially aligned with gaps pertaining to the disciplinary process, appeals process, and public interest considerations.

Current Status: Partially Adopted

The Conseil National de la Comptabilité (CNC), established by decree in 1989, is mandated by Law 15-89 of January 1993 (enacted by Dahir 1-92-139 of 14 Rejab 1413) to set accounting standards. The CNC has adopted Moroccan Generally Accepted Accounting Principles (GAAP) which differ significantly from IFRS. However, the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) reports that the World Bank initiated an IFRS Conversion Project in 2020 with CNC and Phase 1-Diagnosis has been completed. Phase 2 initiated in July 2021, and OEC Morocco reports that it is expecting Moroccan GAAP to mostly converge with IFRS and IFRS for SME once the project is completed.

The Central Bank of Morocco (Bank Al Maghrib) is responsible for issuing accounting standards for banks and financial institutions. Circular 56/G/2007 issued by Bank Al Maghrib requires that all entities under its supervision must use IFRS for accounting periods commencing in January 2008.

The Moroccan Capital Market Authority (AMMC) is responsible for issuing financial reporting for public companies. Circular No. 06/05 of 2007 reaffirms the Moroccan Stock Exchange Law (Law No. 52-01) which stipulates that all companies listed on the Casablanca Stock Exchange, other than banks and similar financial institutions, can choose between IFRS and Moroccan GAAP. In practice, most public companies are using IFRS.

The Insurance regulator (ACAPS) oversees financial reporting for insurance companies. Starting from December 1, 2022, insurance and reinsurance companies are required to publish their financial statements and corporate accounts in accordance with IFRS as issued by IASB. These financial statements must be certified by auditors who are members of OEC Morocco.

Current Status: Partially Adopted

Relevant Organizations

• Conseil National de la Comptabilité (CNC) Morocco
• Ordre des Experts-Comptables du Royaume du Maroc (OEC-Morocco)
• HYPERLINK "http://www.cdvm.gov.ma/en"Autorité Marocaine du Marché des Capitaux (AMMC)

Relevant Legislation

• Law No. 15-89 regulating the practice of Certified Accountancy and establishing l’Ordre des Experts-Comptables, as enacted by Dahir No. 1-92-139 of January 8, 1993
• Companies Law of 1999 (Law on Corporations 17-95)

Relevant Publications

• European Bank for Reconstruction and Development (ERBD), Commercial Laws of Morocco: an Assessment by the ERBD, May 2013.
• Deloitte IAS Plus, “IFRS are permitted for listed companies in Morocco,” July 2005.
• Deloitte IAS Plus, “Update on accounting standards in Morocco,” August 2006.
• OEC-Morocco, SMO Action Plan, 2024.
• PriceWaterHouseCoopers, IFRS Adoption by Country, 2015.
• RSM Morocco, “Audit and Assurance: Auditing in Morocco,” n.d.
• World Bank, Report on the Observance of Standards and Codes—Accounting and Auditing (ROSC: A&A) Kingdom of Morocco (Morocco), July 2002.
• ACAPS (Moroccan Insurance regulator ) https://www.acaps.ma/sites/default/files/publication_documents/instruction_ndeg_p.in_.012020_du_14_07_2020_ifrs.pdf