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Ask which accounting standards apply in Qatar and you will often hear “IFRS” with no source. The answer is mostly right, but the law itself is worded more generally, and the details matter for smaller companies, foreign branches and groups.
Qatari law asks companies to keep their accounts in line with international accounting standards. The Income Tax Law, its Executive Regulations and the Commercial Companies Law each say so in their own words, and listed companies have a specific rule from the Qatar Financial Markets Authority (QFMA).
This guide sets out what each source says and which framework applies to which kind of entity, then covers IFRS 18 with a checklist for the first year.
- Law asks for
- International standards
- IFRS 18 applies
- From 1 January 2027
- Restated year
- 2026 (December year end)
- Standards checked
- 16 October 2026
The short answer
In short
- Qatari law requires books and accounts kept in line with international accounting standards (Income Tax Law Articles 6 and 12; Commercial Companies Law Article 146). In practice, companies report under IFRS.
- Listed companies must prepare their statements under IFRS and have them audited under International Standards on Auditing (QFMA Governance Code for Listed Companies, 2025).
- IFRS for SMEs has not been formally adopted in Qatar, according to the IFRS Foundation. Agree the framework with your auditor before you rely on it.
- IFRS 18 replaces IAS 1 for years beginning on or after 1 January 2027. A company with a 31 December year end restates its 2026 figures in its 2027 statements.
What Qatari law says about accounting standards
No single Qatari law adopts IFRS by name for every company. Several texts point to international standards, each from its own angle. The table sets them out.
| Source | Who it covers | What it says | Article |
|---|---|---|---|
| Income Tax Law | Taxpayers carrying on an activity in Qatar | Books, records and documents must be kept in line with the state’s laws and international accounting standards; the GTA may exempt some taxpayers | Law Art. 12 |
| Income Tax Law | Taxpayers | Taxable income is worked out on the accrual basis used in commercial accounting, in line with international accounting standards; another method needs GTA approval | Law Art. 6 |
| Executive Regulations | Taxpayers filing audited accounts | The final accounts are financial statements prepared under the accounting standards applicable in the state: financial position, profit or loss and comprehensive income, changes in equity, cash flows and notes | Regs Art. 34(1) |
| Executive Regulations | The auditor of those accounts | The auditor’s report must confirm that the accounts follow the applicable standards and that disclosure requirements were met | Regs Art. 34(3) |
| Commercial Companies Law | Joint stock companies, and LLCs through Art. 260 | The auditor’s report must state that the company keeps regular accounts in line with internationally recognised accounting rules | Art. 146(2); Art. 260 |
| Commercial Companies Law | Holding companies | Consolidated statements are prepared under approved international accounting and auditing standards and principles | Art. 269 |
| QFMA Governance Code for Listed Companies (2025) | Listed companies | The board approves audited interim and annual statements prepared under IFRS and IAS, audited under ISA | Board duties; external auditor section |
The laws say “international” standards but do not name a version or an issuer. In practice, that is read as IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB), and it is the framework auditors in Qatar usually report against.
For how to keep the books day to day, see bookkeeping for SMEs in Qatar. For which companies must file audited accounts, see is an audit mandatory in Qatar.
Which framework applies to your company?
The answer depends on the kind of entity and who regulates it. Where we have not read a current official rule, the table says so.
| Entity | Framework | Basis |
|---|---|---|
| LLC or private joint stock company | IFRS in practice | Income Tax Law Art. 12; Regs Art. 34; Commercial Companies Law Art. 146(2) |
| Listed company | IFRS required | QFMA Governance Code for Listed Companies (2025) |
| Holding company | IFRS for the consolidated statements in practice | Commercial Companies Law Art. 269 |
| Subsidiary of a foreign group | IFRS for the Qatar accounts in practice; group reporting may use another framework | Ask the parent which framework the group reports in |
| Bank, insurer or other regulated financial institution | Check your regulator’s current instructions | Not covered here |
| Islamic financial institution | AAOIFI standards where the regulator permits, IFRS where AAOIFI is silent (IFRS Foundation profile) | Check your regulator’s current instructions |
| QFC entity | Check the QFC Companies Regulations | Not covered here |
| Branch of a foreign company | Audited accounts for tax, prepared under the applicable standards | Regs Arts. 33 and 34 |
Branches have their own filing points, covered on our foreign company branches page. For entities in the Qatar Financial Centre or a free zone, see free zone and QFC companies.
Can a small company use IFRS for SMEs?
IFRS for SMEs is a separate, shorter standard issued by the IASB for entities without public accountability. Its third edition was issued in February 2025 and applies to periods beginning on or after 1 January 2027, with earlier adoption permitted. Until then the 2015 edition may be used.
Its status in Qatar is not settled. According to the IFRS Foundation’s profile, Qatar has not adopted IFRS for SMEs and was not considering it, although some Qatari companies and auditors treat it as meeting the legal requirement. We found no text from the General Tax Authority (GTA) or the Ministry of Commerce and Industry (MOCI) that either permits or forbids it.
The practical point is that your auditor’s report must confirm that the accounts follow the applicable standards (Executive Regulations Article 34(3)(b); Commercial Companies Law Article 146(2)). Before the year starts, agree the framework with your auditor in writing. Changing framework after the books are closed costs time and can delay both the audit and the tax return.
What IFRS 18 changes from 2027
IFRS 18 Presentation and Disclosure in Financial Statements was issued by the IASB in April 2024 and replaces IAS 1. It applies to annual reporting periods beginning on or after 1 January 2027. Earlier application is permitted and must be disclosed (IFRS 18 paragraph C1).
It is applied retrospectively. The comparative period is restated, and each line of profit or loss for the year before is reconciled from the IFRS 18 amounts to the amounts reported under IAS 1 (paragraphs C2 and C3). For a 31 December year end, the 2027 statements show 2026 restated, so the 2026 data must be captured in the new format.
Five categories. Income and expenses in profit or loss are classified into five categories (paragraph 47):
| Category | Plain example for a trading or service company |
|---|---|
| Operating | Sales, cost of sales, salaries, rent paid, depreciation |
| Investing | Rental income from an investment property; returns on deposits held as investments |
| Financing | Interest on bank loans |
| Income taxes | Income tax expense |
| Discontinued operations | The result of a business that has been sold or closed |
IFRS 18 brings in two new subtotals, operating profit or loss and profit or loss before financing and income taxes, with some exceptions (paragraphs 69 to 73). It also sets minimum lines, so profit or loss must show at least revenue, operating expenses, the share of results of equity-accounted investments, income tax and a single amount for discontinued operations (paragraph 75(a)). New principles on grouping and splitting, known as aggregation and disaggregation, then decide what is shown in the primary statements and what goes in the notes.
The standard also covers management-defined performance measures. These are subtotals you use in public communications outside the financial statements to show management’s view of performance, such as an adjusted profit figure (paragraph 117). They go in a single note, stated as management’s view and possibly not comparable with other entities, and each is reconciled to the closest IFRS subtotal with its tax and non-controlling interest effects (paragraphs 122 and 123). A company that presents expenses by function, such as cost of sales and administrative expenses, must also disclose in one note its total depreciation, amortisation, employee benefits, impairment losses and inventory write-downs, split by line item (paragraph 83).
IFRS 18 deals with presentation and disclosure. It changes how profit or loss is laid out and what the notes contain, rather than how individual items are recognised or measured. Our IFRS advisory and conversion page describes our help with the change.
Preparing for IFRS 18: a checklist
Checklist
- Confirm your first IFRS 18 year and your comparative year. For a December year end, that is 2027, with 2026 restated.
- Map your chart of accounts to the five categories, so that the 2026 figures can be produced in the new format. See accounting system setup.
- List items that could fall into more than one category and agree their treatment with your auditor early.
- List any performance measures you publish, for example on your website, in bank covenant reports or to investors, and decide whether they are management-defined performance measures.
- If you present expenses by function, set up the data for the paragraph 83 note on depreciation, employee benefits and the other totals.
- Update the schedule that reconciles taxable income to profit in the income statement (Executive Regulations Article 34(2)(f)). See how to file a corporate income tax return.
- Listed companies: plan the first-year interim statements, which show the expected headings and subtotals and reconcile the comparative periods (paragraphs C4 and C5).
If an outside provider keeps your books, agree who prepares the IFRS 18 mapping and the restated comparatives. See outsourced accounting in Qatar.
Keep the roles apart. The person who took part in preparing the final accounts cannot audit them (Executive Regulations Article 34(4)), and an auditor may not audit an entity to which it provides consultancy work (Law No. 8 of 2020, Article 27(3)). The firm that helps you convert to IFRS 18 must be a different firm from your auditor.
What to do next
Confirm which framework your company uses and agree it with your auditor, then plan the IFRS 18 change from your 2026 figures. Our IFRS advisory and conversion service helps you prepare the mapping, the restated comparatives and the new notes. Our bookkeeping service covers the books themselves. For the audit, see our external audit page; it must be a separate firm from the one that helps you prepare. To discuss your needs, request a proposal.
Frequently asked questions
What is IFRS in Qatar?
IFRS are the accounting standards issued by the IASB. Qatari law requires accounts kept under international accounting standards (Income Tax Law Article 12; Commercial Companies Law Article 146(2)), listed companies must use IFRS under the QFMA Governance Code, and in practice companies report under IFRS.
Is IFRS mandatory for private companies in Qatar?
The law requires international accounting standards without naming a version, and the auditor’s report must confirm the accounts follow them (Executive Regulations Article 34(3)). In practice that is IFRS.
Can we use IFRS for SMEs in Qatar?
According to the IFRS Foundation, Qatar has not formally adopted IFRS for SMEs, though some companies and auditors use it. We found no GTA or MOCI text either way. Agree the framework with your auditor in writing before you rely on it.
When does IFRS 18 apply?
For annual reporting periods beginning on or after 1 January 2027, with earlier application permitted (IFRS 18 paragraph C1). For a 31 December year end, the first IFRS 18 statements are for 2027, with the 2026 comparatives restated (paragraphs C2 and C3).
Does IFRS 18 change our profit?
IFRS 18 is a presentation and disclosure standard. It changes how profit or loss is laid out, with five categories and two new subtotals, and adds notes on performance measures and on expenses, rather than how items are recognised or measured (paragraphs 47, 69 to 73, 83, 122).
Does IFRS 18 apply to companies using IFRS for SMEs?
No. IFRS 18 is part of full IFRS Accounting Standards. IFRS for SMEs is a separate standard with its own third edition, issued in February 2025 and effective for periods beginning on or after 1 January 2027.
Can the firm that helps us convert to IFRS also audit our accounts?
No. The person who took part in preparing the final accounts cannot audit them (Executive Regulations Article 34(4)), and an auditor may not audit an entity to which it provides consultancy work (Law No. 8 of 2020, Article 27(3)).
Sources
Laws and regulations
Accounting standards
- Use of IFRS Standards: Qatar jurisdiction profile (IFRS Foundation)
- IFRS 18 Presentation and Disclosure in Financial Statements (IFRS Foundation)
- IFRS 18 full text, 2026 issued standards (IFRS Foundation)
- New IFRS Accounting Standard will aid investor analysis, 9 April 2024 (IFRS Foundation news)
- IFRS for SMEs Accounting Standard (IFRS Foundation)
This article is general information, not accounting or legal advice for your company. The laws, regulations and standards cited were checked on 16 October 2026; English descriptions of Arabic legal texts are our own. Agree your accounting framework with your auditor before the year starts.