Background
The Accounting and Auditing Regulator (ACAR) is the government body responsible for overseeing accounting and auditing matters in Cambodia. ACAR has stated that micro and small enterprises in the handicraft sector are not required to adopt any specific accounting standards when preparing financial statements.
An inter-ministerial meeting chaired by the Secretary of State of the Ministry of Economy and Finance reviewed procedures for granting licenses or permits to operate soap manufacturing businesses and discussed measures to simplify business operations for the sector. ACAR reported it is collaborating with relevant institutions to prepare simplified accounting standards for micro and small enterprises that focus on income-and-expense recording, and that annual financial statement submission to ACAR is not required for those enterprises.
Scope of Application
The procedural review and accounting guidance discussed apply to enterprises engaged in soap manufacturing and to handicraft-sector firms classified as micro and small enterprises (MSMEs). The scope covers licensing or permit procedures for soap manufacturing businesses and the accounting reporting requirements applicable to MSMEs in that sector.
Key Provisions or Decisions
Officials reviewed existing licensing procedures related to soap manufacturing with a view to simplifying administrative steps for businesses. ACAR clarified that micro and small handicraft enterprises are not mandated to apply a formal accounting standard when preparing financial statements. ACAR is studying and developing simplified accounting standards intended for MSMEs to record income and expenses. ACAR also confirmed that these micro and small enterprises are not required to submit annual financial statements to ACAR.
Implications for Investors, Businesses, or Compliance
The outcomes discussed are directly relevant to compliance and recordkeeping for soap manufacturers operating at micro and small scale. Businesses classified as MSMEs in the handicraft sector should note the regulator’s position on accounting standard requirements and the ongoing preparation of simplified accounting guidance for income-and-expense records, which is intended to support routine bookkeeping and business administration.
Official Source
Primary source: Accounting and Auditing Regulator (ACAR) Facebook post, published 13 July 2026. Original post available at: https://www.facebook.com/acarcambodia/posts/pfbid0NRr8Tadno9X57PmoUtNFFZbpLuF4PXUvhxMqEHK3W5eAWeW4ZfZQaN3VNSrfESNil
