Cambodia: Use of language, currency in accounting records and financial statements

Guidance on the use of language and currency in accounting records and financial statements is effective 1 January 2022

Use of language, currency in accounting records and financial statements

Guidance provided by a circular (MEF 009, September 2021) that addresses the use of language and currency in accounting records and financial statements is effective 1 January 2022.

In general, enterprises and non-profit enterprises are allowed to use the English language in their accounting system or other related systems for accounting records if a suitable replacement system capable of preparing accounting records in the Khmer language cannot be found. Approval is not required to use accounting software that cannot support the use of the Khmer language. However, enterprises and non-profit enterprises must notify officials, in writing, of the name and source of the system they use in their operations for the preparation of their accounting records.

Internal documents to support accounting records must be prepared in the Khmer language, but documents can include English text to accompany the Khmer language version.

Regarding currency, enterprises and non-profit enterprises may choose a functional currency of the Khmer Riel or a foreign currency, depending on the accounting policy set out by the relevant accounting standards used in their daily operations. However, annual financial statements must be prepared in the Khmer language and use the Khmer Riel (or presented in both the Khmer Riel and a foreign currency, translated and converted based on the applicable accounting standards and using the official exchange rates issued by the National Bank of Cambodia).

Read a January 2022 report [PDF 220 KB] prepared by the KPMG member firm in Cambodia

 

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