Accounting in Cambodia: Introduction.

Cambodia requires businesses to apply one of three financial reporting frameworks depending on entity type and audit status, keep records to specific language and currency rules and meet independent audit and filing obligations that carry increasingly significant penalties for non-compliance. Businesses operating in Cambodia, whether domestic or foreign, need to identify which rules apply to their entity before setting up their accounting and reporting processes.

This guide outlines which accounting standard applies to your business, how to meet Cambodia’s financial year-end, bookkeeping and filing requirements, and when an independent audit is required.

Accounting standards in Cambodia

Cambodia has adopted the International Financial Reporting Standards (IFRS) without any amendments. Responsibility for proposing and updating the applicable standards now sits with the Accounting and Auditing Regulator (ACAR), which replaced the National Accounting Council (NAC) as the regulator of the accountancy profession in January 2021. Public interest entities (PIEs), including listed companies, banks, microfinance institutions, insurance companies and large private companies, are required to apply IFRS.

Which framework applies to which entities

Cambodia also has a reduced framework below CIFRS and CIFRS for SMEs. Qualifying SMEs that are not independently audited and are not PIEs may use the Cambodian Reduced Financial Reporting Framework (CRFRF), a simplified framework introduced alongside a digital reporting platform for preparing and submitting statements.

Financial year-end in Cambodia

The financial year-end in Cambodia begins on 1 January and ends on 31 December. Companies may seek permission from the Ministry of Economy and Finance to adopt an alternative accounting year.

For newly established companies, the fiscal year is calculated for the first year from the date of incorporation to 31 December of the year of its creation.

Changing the financial year-end for foreign-owned companies

In certain situations, it is possible to apply for a change in the standard year-end. A registered company with 51% or more foreign ownership shall be allowed to request a different financial year-end from the calendar year by submission of an administrative application in Khmer for approval by the General Department of Taxation (GDT).

According to Prakas No. 1481, the application letter to the GDT is accompanied by the following documents and information:

• Certification from the offshore parent company confirming its financial year-end

• Certification from the independent auditor of the offshore parent company confirming its financial year-end. If the offshore parent company does not have an auditor, it is recommended that the parent company to provide a letter advising that they do not have an independent auditor.
• Copy of the company’s Memorandum and Article of Association that states the name of its offshore parent company

Bookkeeping requirements

All books, records and documents must be kept for 10 years at the business premises in Cambodia in either hard or electronic format.

Day-to-day accounting records may be kept in Khmer Riel or another functional currency, but annual financial statements must be prepared in Khmer language and Khmer Riel, or in dual currency.

Characteristics of proper accounting records

Proper accounting records are supported by documentary evidence for every transaction, kept up to date and organised so the balance sheet, income statement and underlying ledgers reconcile to source documents. Records meeting these conditions hold up under audit and tax review, regardless of whether they are kept by hand or through software.

Minimum records for small companies

Small companies without complex operations do not need every category listed below to stay compliant. At a minimum, maintain the accounting ledger, journal, profit and loss statements, balance sheets, bank statements and sales and purchase records with supporting invoices.

Documents, books and records that are required to be kept include:

• Accounting books and records:
  • Accounting ledger and accounting journal
  • Statement of accounts and, records of payment and receipts
  • Profit and loss statements and balance sheets
  • Letter of credit, applications for letters of credit, bank drafts and records of electronic funds transfer
  • Credit card transactions and bank statements, including cheque records
  • Internal or external audit reports
• Business records:
  • Purchase and sales records, contracts, purchase orders and agreements
  • Royalty, pricing and warranty agreements
  • Warehouse and production or manufacturing records and reports
  • Technical assistance and brokerage contracts, including records of payment
  • Transportation and customs clearance documents:
  • Customs declarations and payment receipts
  • Cargo manifests and bills of lading
  • Required licenses, permits or certificates of origin
  • Delivery notes, and records related to duty and tax exemption, relief, refund and remission

Annual financial statements of Cambodian companies

According to the Cambodian accounting standards, the financial statements include:

• Balance sheet
• Income statement
• Cash flow statement
• Statement of changes in equity
• Notes to the financial statements and accounting policies

• The unaudited financial statements must be filed with the ACARwithin three months and 20 days from the close of their financial year-end.

Contents of the notes to the financial statements

The following must be included in the notes to financial statements:

• Basis of preparation of the financial statements and a description of the accounting policies, which cover the measurement basis used and any specific policy necessary for proper understanding of the statements
• Additional information supporting the balance sheet, income statement, cash flow statement and statement of changes in equity

If the following information is not disclosed elsewhere in the financial statements, it should be included in the notes:

• The company’s domicile, type of company and country of incorporation
• Address of registered office or principal place of business, if different from the registered office
• Description of the company’s scope of business

Auditing of financial statements

According to Prakas no.563 MEF BrK, all public enterprises, enterprises with public accountability and Qualified Investment Projects (QIPs) are required by law to submit their financial statements for an independent audit, regardless of turnover, asset value or employee numbers. The threshold-based requirement below applies only to enterprises that fall outside these categories.

Enterprises other than public enterprises, enterprises with public accountability and QIPs need to submit their financial statements for an independent audit if two of the three conditions below are met:

• Has an annual turnover exceeding KHR 4 billion
• Has total assets above KHR 3 billion
• Has more than 100 employees

Companies that do not meet two of the three criteria above can voluntarily submit their financial reports for an independent audit. Non-profit organisations must submit their financial statements for an independent audit if their annual expenses exceed KHR 2 billion and they have at least 20 employees.

Audit thresholds versus taxpayer classification

These turnover, asset and employee thresholds determine whether an independent audit is required. They are separate from the large, medium and small taxpayer classification the GDT uses for tax administration and which appears in the penalty table below. Meeting the audit thresholds does not automatically make a company a large taxpayer, and being classified as a large taxpayer does not automatically trigger the audit requirement.

Submission deadline and who performs the audit

Audited financial statements and auditor’s report must be submitted to the ACAR within six months and 20 days after the closing date of the accounting records. For companies following the calendar year, the submission date is usually 20 July of the following year.

Independent audits must be carried out by an auditor who is a member of the Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA) and holds a valid licence issued through the Accounting and Auditing Regulator (ACAR). Audits of banks, insurance companies and listed companies require additional sector approval. This differs from a tax audit, which the GDT conducts to review tax filings and payments, and which can occur independently of the annual audit requirement.

Penalties for non-compliance

The following table provides a summary of the penalties for non-compliance, under Sub-Decree No. 102 SD. Es on Penalties for Violations of the Law on Accounting and Auditing.

Delayed settlement of the penalty (from the date the penalty is received) is subject to the following additional penalties:

• Over 30 days: double penalty amount
• Over 60 days: triple penalty amount
• Over 90 days: legal action may be initiated

Responding to a non-compliance notice

If ACAR or the GDT identifies a breach, the enterprise typically receives a formal notice specifying the issue and the penalty amount. Confirm the notice against the table above to check that the amount and taxpayer classification are correct.

• Confirm the specific obligation breached and the penalty period stated in the notice
• Settle the penalty promptly, since delayed settlement doubles after 30 days and triples after 60 days
• Correct the underlying issue, such as appointing an auditor or reinstating Khmer-language records, to avoid repeat notices
• Keep evidence of correction and payment for the 10-year record retention period
• Seek professional advice before responding if the notice disputes a threshold calculation or classification

For the full annual compliance calendar across ACAR and GDT, see our guide on annual filing requirements for Cambodia companies.

Conclusion

Cambodia’s accounting requirements now span full IFRS, IFRS for SMEs and a simplified framework for smaller, non-audited entities, so the right standard depends on entity type. Meeting these requirements in practice means keeping records in the correct language and currency, confirming the financial year-end and checking whether turnover, assets or employee numbers trigger an independent audit.

Getting any of this wrong now carries a substantially higher cost, since Cambodia’s penalty framework for accounting and auditing violations has recently increased. Where the rules feel unclear or a deadline is approaching, confirming the compliance position early is more straightforward than responding to a non-compliance notice after the fact.

How Acclime can help with accounting compliance in Cambodia

Acclime offers expert support across bookkeeping, financial statement preparation and timely submission to the relevant authorities, helping foreign investors and local businesses navigate Cambodia’s accounting requirements with confidence. Whatever your entity type, our local accounting professionals can help you stay compliant and audit-ready. Let us handle the complexities so you can focus on growing the business.