Background
The Accounting and Auditing Regulator (ACAR) issues classification and filing rules that determine when financial statements must be submitted for independent audit under Cambodia’s accounting framework. Prakas No. 563 contains specific criteria referenced by ACAR for deciding whether an entity’s financial statements fall within mandatory audit requirements.
ACAR guidance indicates that an entity that does not seek profit may submit a “letter requesting change of entity type” to ACAR to prevent a change in audit classification from affecting statutory filing deadlines. The guidance applies both to entities that meet the dual criteria set out in Article 6 of Prakas No. 563 and to entities that voluntarily elect to have their financial statements audited by an independent auditor.
Scope of Application
The instruction targets: (1) entities that meet the two criteria specified in Article 6 of Prakas No. 563, and (2) entities that voluntarily submit their financial statements for independent audit. The measure is designed to address cases where current-year circumstances or voluntary audit choices could otherwise alter the reporting timeline tied to audit status.
Key Provisions or Decisions
ACAR requires the submission of a formal letter requesting a change of entity type from profit-seeking to non-profit (or similar non-profit classification) when an entity does not seek profit and wishes to avoid audit-triggered deadline changes. Submitting the letter is the designated procedure to preserve the original filing deadlines for financial statements that would otherwise be subject to independent audit requirements.
Implications for Investors, Businesses, or Compliance
Entities and their accountants should assess entity classification early in the reporting cycle and, where applicable, prepare and submit the letter to ACAR in a timely manner to avoid changes to statutory filing dates. Auditors and compliance officers should document the entity’s classification status and any correspondence with ACAR as part of year-end reporting procedures.
Official Source
Source: Accounting and Auditing Regulator (ACAR) Facebook post, 3 August 2026 — facebook.com/acarcambodia. The post also referenced Prakas No. 563 and ACAR’s Telegram channel for updates.
