Screenshot: 

A 2003 World Bank review of the accounting and auditing environment in Lebanon noted that the ministerial order of 1996 required the adoption of International Financial Reporting Standards (IFRSs) "with exceptions" for most companies. Listed companies are required to follow IFRSs, however, banks must follow rules set by the Banking Control Commission, which differ from IFRSs, the World Bank noted. With regard to small companies, the World Bank report pointed out that these entities are exempt from IFRSs requirements. Overall, the World Bank reported that despite the adoption of international standards, significant compliance gaps exist in both accounting and auditing practices, although fewer gaps were observed with banks and listed companies. Camille C. Sifri, in a 2004 presentation, reiterated the fact that mandatory implementation as well as effective enforcement of IFRSs was limited to publicly listed companies and banks. World Bank recommendations included, but were not limited to, adopting new laws regulating accounting and auditing, requiring the application of IFRSs by all public interest entities, reforming the role of the Higher Council on Accounting as the professional oversight body, and upgrading the licensing procedure for accountants in public practice.

According to a 2003 World Bank review of accounting and auditing practices in Lebanon, financial statements of listed companies and banks must be audited in accordance with International Standards on Auditing (ISAs) per the Beirut Stock Exchange and Banking Control Commission rules, respectively. However, the assessment noted that Lebanese legislation does not specify auditing standards with regard to other entities. Nonetheless, many audit firms make an effort to perform audits in line with ISAs. At the time of the assessment, the Minister of Finance was in the process of drafting a Ministerial Order to require the use of ISAs by all auditors. However, the 2007 Lebanese Association of Certified Public Accountants self-assessment stated that the issuance of such an order was still a work-in-progress. The World Bank noted that, in general, Lebanon had made "commendable progress" in implementing international standards. However, other than in banks and listed companies, significant compliance gaps existed both in accounting and auditing practices. Among other issues, the World Bank recommended reviewing existing legislation or legislating new laws for accounting and auditing, requiring the application of ISAs by all public interest entities, reforming the role of the Higher Council on Accounting as the professional oversight body, and upgrading the licensing procedure for auditors in public practice.