Browse Profiles > Norway > International Financial Reporting Standards
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Standards Compliance Index 65.83 out of 100 7
Business Indicator Index 9.98 out of 12 22
Norway

International Financial Reporting Standards

Summary
Norway is a European Economic Area (EEA) member and therefore adheres to European Commission (EC) regulations. In line with the EC regulation No. 1606/2002, listed companies in Norway are required to use International Financial Reporting Standards (IFRSs) in their consolidated accounts. The 2006 EC report on the implementation of the Regulation No. 1606/2002 points out that Norway permits IFRSs in the annual accounts for listed companies and annual and consolidated accounts for all other companies. Per the 2007 publication by the Financial Supervisory Authority of Norway (FSAN), as of February 2007, IFRSs are not allowed to be applied by financial institutions and investment firms, which are required to follow rules set by the FSAN. However, the FSAN notes that the Ministry of Finance is considering bringing reporting requirements for financial institutions in line with IFRSs. Other companies which choose not to apply IFRSs follow Norwegian accounting standards set by the Norwegian Accounting Standards Board. Although the International Monetary Fund's (IMF) 2005 country report on Norway notes that accounting, auditing, and actuarial standards are "well developed" and in line with EU directives and international best practices, there is insufficient publicly available information that specifically addresses conformity of Norwegian standards with IFRSs.

    General Overview

    The International Monetary Fund's (IMF) 2005 Financial Systems Stability Assessment (FSSA) for Norway notes that accounting, auditing, and actuarial standards are "well developed" and are in line with European Union (EU) directives and international best practices. Norway is a European Economic Area (EEA) member and as such it must adhere to European Commission (EC) regulations. In accordance with the EC regulation No. 1606/2002, listed companies in Norway are required to use International Financial Reporting Standards (IFRSs) in their consolidated accounts. The 2006 European Commission report on the implementation of the Regulation No. 1606/2002 points out that Norway permits IFRSs in the annual accounts for listed companies and annual and consolidated accounts for all other companies. However, the 2007 Financial Supervisory Authority of Norway's (Kredittilsynet, or FSAN) publication "The Financial Market in Norway 2006: Risk Outlook" states that, as of February 2007, "no such right [to use IFRSs] is available to financial institutions or investment firms" (p. 53). However, the Ministry of Finance (MoF) is considering bringing accounting regulations for banks, finance companies, mortgage companies, and investment firms in Norway in line with the international requirements. Entities not required or permitted to apply IFRSs are subject to standards set by the Norwegian Accounting Standards Board (Norsk RegnskapsStiftelse, or NASB). However, there is insufficient publicly available information that specifically addresses conformity of Norwegian standards with IFRSs.
    According to the self-assessment prepared in 2005 by the Norwegian Institute of Public Accountants (Den norske Revisorforening, or DnR), the legal framework for accounting practices in Norway is governed by the Accounting Act, Auditing and Auditors Act, Private Companies Act, Public Companies Act, and Partnerships and Limited Liability Partnerships Act. The NASB sets national accounting standards. According to the NASB website, "all standards (final) are mandatory. All standards must be in compliance with the Norwegian Accounting Act (1998). A preliminary standard, which is the second step from an exposure draft to a final standard, is recommended. Furthermore the Oslo Stock Exchange requires listed companies to comply with the preliminary accounting standards."
    The regulatory responsibility for banks, insurance firms, and the securities market falls under the FSAN. The FSAN was established in 1986 as an integrated supervisor for the above mentioned sectors. Since 2005, as mentioned in the FSAN 2006-2010 strategy report, the FSAN's responsibilities include ensuring compliance with accounting legislation and international accounting standards for listed companies. Furthermore, the FSAN is responsible for setting accounting rules for financial institutions. The FSAN is also the licensing authority for auditors and accountants. The DnR develops the professional code of ethics for its members which, as the 2006 DnR assessment specifies, are based on the International Federation of Accountants (IFAC) code of ethics issued prior to 2004. However, the DnR plans to incorporate the latest version of the IFAC Code (effective June 30, 2006) into national requirements. The DnR is listed as a member on the IFAC website.


    The Principles

    IFRS 1: First-time Adoption of International Financial Reporting Standards (effective 2006)

    There is insufficient information publicly available that directly addresses this principle.

    IFRS 2: Share-based Payment (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IFRS 3: Business Combinations (effective 2004)

    There is insufficient information publicly available that directly addresses this principle.

    IFRS 4: Insurance Contracts (effective 2006)

    There is insufficient information publicly available that directly addresses this principle.

    IFRS 5: Non-current Assets Held for Sale and Discontinued Operations (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IFRS 6: Exploration for and Evaluation of Mineral Resources (effective 2006)

    There is insufficient information publicly available that directly addresses this principle.

    IFRS 7: Financial Instruments: Disclosures (effective 2007)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 1: Presentation of Financial Statements (effective 2007)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 2: Inventories (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 7: Cash Flow Statements (effective 1994)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 10: Events after the Reporting Period (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 11: Construction Contracts (effective 1995)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 12: Income Taxes (effective 2001)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 14: Segment Reporting (effective 1998)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 16: Property, Plant and Equipment (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 17: Leases (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 18: Revenue (effective 1995)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 19: Employee Benefits (effective 2006)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 20: Accounting for Government Grants and Disclosure of Government Assistance (effective 1984)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 21: The Effects of Changes in Foreign Exchange Rates (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 23: Borrowing Costs (effective 1995)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 24: Related Party Disclosures (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 26: Accounting and Reporting by Retirement Benefit Plans (effective 1998)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 27: Consolidated and Separate Financial Statements (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 28: Investments in Associates (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 29: Financial Reporting in Hyperinflationary Economies (effective 1990)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 31: Interests in Joint Ventures (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 32: Financial Instruments: Disclosure and Presentation (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 33: Earnings per Share (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 34: Interim Financial Reporting (effective 1999)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 36: Impairment of Assets (effective 2004)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 37: Provisions, Contingent Liabilities and Contingent Assets (effective 1999)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 38: Intangible Assets (effective 2004)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 39: Financial Instruments: Recognition and Measurement (effective 2006)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 40: Investment Property (effective 2005)

    There is insufficient information publicly available that directly addresses this principle.

    IAS 41: Agriculture (effective 2003)

    There is insufficient information publicly available that directly addresses this principle.

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    Sources of Assessment

    European Commission, "Planned Implementation of the IAS Regulation (1606/2002) in the European Union (EU) and European Economic Association (EEA)," May 2006. Available from European Commission website. Accessed on November 12, 2007. (EC 2006)

    International Monetary Fund, "Norway: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision, Insurance Regulation, and Payment Systems," Country Report No. 05/200, Washington D.C.: IMF, June 14, 2005. Available from International Monetary Fund website. Accessed on November 12, 2007. (IMF 2005)

    Norwegian Institute of Public Accountants, "Assessment of the Regulatory and Standard-Setting Framework," Self-assessment prepared as a part of the International Federation of Accountants' (IFAC) Member Body Compliance Program, April 2005. Available from International Federation of Accountants' website. Accessed on November 12, 2007. (DnR 2005)

    Norwegian Institute of Public Accountants, "Response to the IFAC Part 2, SMO Self-Assessment Questionnaire," Self-assessment prepared as a part of the International Federation of Accountants' (IFAC) Member Body Compliance Program, August 2006. Available from International Federation of Accountants website. Accessed on November 12, 2007. (DnR 2006)

    Relevant Organizations

    Committee of European Securities Regulators (CESR)

    European Accounting Regulatory Committee (ARC)

    European Commission (EC)

    European Federation of Accountants - Fédération des Experts Comptables Européens (FEE)

    European Financial Reporting Advisory Group (EFRAG)

    Financial Supervisory Authority of Norway - Kredittilsynet (FSAN)

    Ministry of Finance - Finansdepartementet (MoF)

    Norges Bank (NB)

    Norwegian Accounting Standards Board - Norsk RegnskapsStiftelse (NASB)

    Norwegian Institute of Public Accountants - Den norske Revisorforening (DnR)

    Oslo Stock Exchange - Oslo Børs (OSE)



    Relevant Legislation/Regulation

    Accounting Act,1998 - lov om årsregnskap m.v., 1998 (in Norwegian only)

    Final Norwegian Accounting Standards - Endelige standarder (RS) (in Norwegian only)

    Preliminary Norwegian Accounting Standards -Foreløpige standarder (in Norwegian only)

    Public Limited Companies Act, 1997 - Lov om allmennaksjeselskaper, 1997 (in Norwegian only)

    Act on Auditing and Auditors No.2, 1999 - Lov om revisjon og revisorer, 1999

    Private Companies Act, 1997 - Lov om aksjeselskaper, 1997 (in Norwegian only)

    Partnerships and Limited Liability Partnerships Act, 1985 - Lov om ansvarlige selskaper og kommandittselskaper, 1985 (in Norwegian only)

    Circulars of the OSE - Børssirkulære (in Norwegian only)

    Rules and Regulations of the OSE - Børsregler (in Norwegian only)

    EU Accounting-Related Directives



    Supplementary Sources

    Deloitte & Touche Tohmatsu IAS Plus website. Accessed on November 12, 2007. (Deloitte IAS Plus website)

    Financial Supervisory Authority of Norway, "The Financial Market in Norway 2006: Risk Outlook," Oslo: Kredittilsynet, February 2007. Available from Financial Supervisory Authority of Norway website. Accessed on November 13, 2007. (FSAN 2007a)

    Financial Supervisory Authority of Norway, "Strategy 2006 - 2010," Oslo: Kredittilsynet, May 2007. Available from Financial Supervisory Authority of Norway website. Accessed on November 12, 2007. (FSAN 2007b)

    International Federation of Accountants website. Accessed on November 12, 2007. (IFAC website)

    Norwegian Accounting Standards Board website. Accessed on November 12, 2007. (NASB website)
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