2020-21-30

Accounting Principles in Morocco and the

Divergences with International Standards of IFRS

IMANE ATWANI
Hebei university, China
Accounting Major

Abstract
Moroccan GAAP sets itself a precise scope, aims for clear objectives, and adopts fundamental
accounting principles. but in order not to be on the sidelines of international developments
which, today, are irreversible the Moroccan authorities were aware that the IFRS reference
system represents today the international accounting language on international markets and
have thus made use of it. compulsory for some companies. Moreover, the adoption of such
standards in the Moroccan context is not without bringing some difficulties given the
divergences in the fundamental principles on which the two accounting systems, local and
international, are based. Indeed, the transition to IFRS standards involves questioning
traditional accounting approaches in favor of new concepts marking a real accounting
revolution. Thus, a reminder allowing us to define this new international accounting system
and highlight its philosophy seems to us judicious to explain its wide distribution at the world
level and the interest of its adoption by Moroccan companies. Also, the analysis of the main
differences between the Moroccan accounting framework and the international one allows us
to conclude that at first sight, the international accounting framework succeeds in achieving a
real and faithful translation of the economic situation of any adoptive company. This article
tries to explain the standards in the Moroccan context. The paper gives a general idea of IFRS
standards, and finally highlights the major divergences.

KEYWORDS: General Code of Accounting Standards, Moroccan GAAP, IFRS, divergences.

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TABLE OF CONTENT

Abstract................................................................................................................1
TABLE OF CONTENT......................................................................................2
Introduction.........................................................................................................4
PART I- MOROCCAN ACCOUNTING STANDARDS (GAAP)..................5
I- The birth of the General Code of Accounting Standards (CGNC) in Morocco..........5
II-The General Code of Accounting Standards..................................................................5
III- The Fundamental accounting principles......................................................................6
1. THE PRINCIPLE OF GOING CONCERN…………………………………………………. 6
2. THE PRINCIPLE OF PERMANENCE OF METHODS…………………………………… 6
3. THE PRINCIPLE OF HISTORICAL COST………………………………………………... 7
4. THE PRINCIPLE OF SPECIALIZATION OF EXERCISES………………………………. 7
5. THE PRINCIPLE OF PRUDENCE…………………………………………………………. 7
6. THE PRINCIPLE OF CLARITY…………………………………………………………….7
7. THE PRINCIPLE OF SIGNIFICANT IMPORTANCE…………………………………… 8
IV- Organization of accounting...........................................................................................8
1-OBJECTIVES OF THE ACCOUNTING ORGANIZATION…………………………………. 8
2-BASIC STRUCTURES OF ACCOUNTING…………………………………………………... 8
3-CHART OF ACCOUNTS……………………………………………………………………….9
4-FINANCIAL STATEMENTS……………………………………………………………….. 10
PART II – international accounting standards IFRS....................................11
I-Presentation of IFRS standards:.....................................................................................11
1-The principles of international accounting standards……………………………………. 11
2-The Benefits of Moving to IFRS……………………………………………………………. 11
3-The objectives of IAS / IFRS:……………………………………………………………… 11
PART III: Main divergences with the CGNC................................................12
I. Conceptual framework and objective of the standards...............................................12
1. Existence of a conceptual framework……………………………………………………... 12
2. Orientation of financial information………………………………………………………. 12
3. Substance over form……………………………………………………………………….. 12
4. Intangibility of the opening balance sheet………………………………………………… 12
II. Presentation of financial statements.............................................................................12
1. Annual financial statements………………………………………………………………… 12

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2. Definition of the asset……………………………………………………..…………………. 13
3. Definition of expenses and income………………………………………………………… 13
4. Use of updating……………………………………………………………………………… 13
Conclusion..........................................................................................................14
References..........................................................................................................15

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Introduction

The General Code of Accounting Standards of 1992 (MOROCCAIN GAAP) was born in the
context to accompany the movement initiated all over the world under the effect of
globalization. Professionals and Moroccan public authorities are always showing their interest
in changing national accounting standards. Moreover, they believe it is necessary to
continuously renovate the accounting standards to meet the new requirements revealed after
their application. In addition, in a context characterized by the opening of economies on an
international scale and by the circulation of international trade, the national accounting
standard is no longer adapted to meet the needs of all partners (national and foreign).
maintaining its adoption can be a brake on business development.
In 2002, recommendations for improving the adopted accounting standards were formulated
by experts from the world bank as part of an assessment report on compliance with standards
and codes, particularly in the area of auditing and accounting.
It is in this context that the modernization of the Moroccan GAAP (CGNC) was decided
through the path of the convergence of Moroccan standards to IFRS standards by creating a
universal language of accounting and a single universe of accounting methods. The adoption
of the international accounting standard, therefore, aims to promote the homogeneity of the
financial information published
Aware of the importance of its standards, Morocco is gradually embarking on the path that
will lead to the adoption of this international benchmark. And this in order to guarantee the
opening of the national economic fabric to foreign investors and donors. The transition to
IFRS standards is a real transformation for Moroccan companies due to the significant
differences between the Moroccan reference system, the General Accounting Standard
(CGNC) and IFRS standards. Our work falls within the framework of the divergence of
Moroccan accounting standards from international standards IFRS.
Our work is divided into 3 parts:
-First will examine the Moroccan GAAP and the core principles used in the application
of financial statements.
-Second part represent the basic concepts about international standards IFRS
- In the last part we will focus on the main divergences between the two norms
Moroccan
GAAP and IFRS

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PART I- MOROCCAN ACCOUNTING STANDARDS

(GAAP)
I- The birth of the General Code of Accounting Standards (CGNC) in
Morocco
In the absence of an official chart of accounts in Morocco before 1992 and because of the
poverty of economic and financial information generated by the accounts of companies and its
inadequacy to the economic and social realities of the country, a " national committee of
accounting chart” was created by the Prime Minister (circular of October 10, 1983).
This body was responsible for preparing a draft Accounting Plan. However, the work of this
committee did not really start until August 19, 1986. On that date, the Minister of Finance set
up within the committee a technical committee called the “Accounting Standardization
Commission'' which drew up the draft of the General Accounting Standardization Code
(CGNC). The CGNC is implemented by decree n ° 2.89.61 of November 10, 1989 setting the
rules applicable to the accounting of public establishments and by opinions n ° 1 and 2 of the
National Accounting Council adopted by a plenary assembly meeting on July 26 1993 and
following the publication of Law of December 30, 1992 relating to the accounting obligations
of traders. With the CGNC, we are witnessing the transition from a "simplistic" system to a
system considered complicated and advanced. It is not simply a matter of changing account
numbers but of a new philosophy and new principles whose objective is to convey, as far as
possible, a true image of the company.
II-The General Code of Accounting Standards
The Moroccan GAAP, which we refer to it as the French acronym, CGNC (Code Général de
la Normalisation Comptable) comprises two parts:
- The first part entitled “General Accounting Standards” which we refer to as the French
acronym Norme générale comptable (NGC), groups together the guiding choices, the
fundamental principles and the basic conventions which govern accounting standardization in
Morocco. The NGC is designed as standards to constitute the single platform and the
common accounting language of the greatest number of economic entities whatever their
specificities.
- the second part entitled “general business chart of accounts; in the French acronym plan
comptable général de l'entreprise (PCGE) presents the application device of the NGC to
economic entities having the character of business in the broad sense, and acting in economic
activity other than those sectors of financial establishments, banks and insurance.
Although the PCGE provides for a certain number of specific cases of application, in
particular in its special provisions, certain very specific branches of activity may be the
subject of adaptations from the PGCE, within the framework of professional accounting
plans. Financial establishments, banks and insurance companies remain governed by the
provisions of this General Accounting Standard, even if they have independent sectoral charts
of accounts.
The Moroccan GAAP is designed to meet the two primary objectives of accounting
standardization which are:
• serve as a basis for information and management of the company;
• to provide as accurate a picture as possible of what the company represents to all account
users, private or public.

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III- The Fundamental accounting principles
Companies must draw up at the end of each financial year the summary statements capable of
giving a true picture of their assets, their financial situation and their results.
The representation of a faithful image necessarily rests on a certain number of basic
conventions- constituting a common language - called fundamental accounting principles.
When transactions, events and situations are translated into accounting in compliance with
fundamental accounting principles and the prescriptions of The Moroccan GAAP (CGNC),
the summary statements are presumed to give a true picture of the assets, the financial
situation and the business results.
In the event that the application of these principles and these prescriptions is not sufficient to
obtain a faithful image from the summary statements, the company must provide in the
financial statements, all indications allowing it to achieve the goal of faithful image. In the
exceptional case where the strict application of a principle or a prescription turns out to be
contrary to the objective of the faithful image, the company must necessarily deviate from it.
This exemption must be mentioned in the financial statements and duly justified, with an
indication of its influence on the assets, financial situation and results of the company.

The fundamental accounting principles used are seven in number:

1. THE PRINCIPLE OF GOING CONCERN
According to this principle, the company must establish its summary statements in the
perspective of a normal continuation of its activities. Consequently, in the absence of any
indication to the contrary, it is supposed to draw up its financial statements without the
intention or the obligation to go into liquidation or to significantly reduce the scope of its
activities.
This principle conditions the application of other accounting principles, methods and
rules such as these must be respected by the company, in particular those relating to the
consistency of methods and to the rules for valuation and presentation of summary statements.
In the event that the conditions for a total or partial cessation of activity are met, the
hypothesis of going concern must be altered in favor of the hypothesis of liquidation or
sale. As a result, the principles of consistency of methods, historical cost and specialization
of exercises are called into question. Only liquidation or disposal values must therefore be
used and the presentation of the summary statements must itself be made based on
this assumption.
According to this same principle, the company corrects to its liquidation or disposal value any
isolated asset whose use must be definitively abandoned.
2. THE PRINCIPLE OF PERMANENCE OF METHODS
By virtue of the principle of consistency of methods, the company draws up its summary
statements by applying the same valuation and presentation rules from one financial year to
another.
The company can only introduce changes in its methods and rules of evaluation and
presentation in exceptional cases. In these circumstances, the modifications made to
the usual methods and rules are specified and justified, in the statement
of additional information, with an indication of their influence on the assets,
the financial situation and the results.
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3. THE PRINCIPLE OF HISTORICAL COST
Under the principle of historical cost, the entry value of an item recorded in the accounts for
its amount expressed in current monetary units on the entry date remains intangible regardless
of the subsequent evolution of purchasing power. currency or current value of the item,
subject to the application of the precautionary principle. By way of derogation from this
principle, the company may decide to revalue all of its tangible and financial assets, in
accordance with the requirements of the GAAP.

4. THE PRINCIPLE OF SPECIALIZATION OF EXERCISES

Due to the division of the life of the company into accounting years, the expenses and the
income must be, by virtue of the principle of specialization of the exercises, attached to the
year which actually concerns them and to that one only. Income is recognized as and when it
is acquired and expenses as it is incurred, without taking into account the dates of their
collection or payment. Any expense or income relating to the financial year but known after
the closing date and before the date of preparation of the summary statements, must be
recognized among the expenses and income for the year in question. Any expense or income
known during a fiscal year but relating to a previous fiscal year must be entered among the
charges or income for the current fiscal year. Any expense or income recognized during the
fiscal year and relating to subsequent fiscal years must be subtracted from the constituent
elements of the result for the current fiscal year and entered in an accruals account.

5. THE PRINCIPLE OF PRUDENCE

By virtue of the principle of prudence, the present uncertainties likely to lead to an increase in
expenses or a decrease in income for the year must be taken into account in calculating the
result for this year. This principle avoids transferring these charges or reductions in income to
subsequent financial years, which must encumber the result of the current financial year.
In application of this principle, products are only taken into account if they are certain and
definitively acquired by the company; on the other hand, the charges are to be taken into
account when they are probable.
Only profits made on the closing date of a financial year can affect the results; as an
exception, the partial profit is considered to have been made on an operation not completed at
the closing date meeting the conditions set by the GAAP (CGNC).
The capital gain observed between the current value of an asset and its entry value is not
recorded. The least -value must always be recorded as expenses, although it appears to be
temporary on the date established of financial statements. All the risks and charges
arising during the fiscal year or during a previous fiscal year must be entered in the charges
for the fiscal year even if they are only known between the closing date of the financial year.
year and date of establishment of the state of synthesis.

6. THE PRINCIPLE OF CLARITY

According to the principle of clarity:
• transactions and information must be entered in the accounts under the appropriate
heading, with the correct denomination and without compensation between them;

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• assets and liabilities must be valued separately;
• the elements of the summary statements must be entered in the appropriate items
without any compensation between these items.
In application of this principle, the company must organize its accounts, record its operations,
prepare and present its summary statements in accordance with the prescriptions of the
GAAP.
The methods used must be clearly indicated, in particular in cases where they fall under
options authorized by the CGNC(GAAP) or in those where they constitute exceptions of an
exceptional nature.
- Exceptionally, transactions of the same nature carried out in the same place, on the same
day, may be grouped together with a view to their recording in accordance with the
procedures provided for by the CGNC.
7. THE PRINCIPLE OF SIGNIFICANT IMPORTANCE
According to the principle of significant importance, the summary statements must reveal all
the elements whose importance can affect the assessments and
decisions. Is significantly any information that may influence the opinion that the financial
statements of the readers may have on the assets, financial position and results.
This principle is mainly applied in terms of evaluation and in the presentation of summary
statements. It does not go against the rules prescribed by the CGNC concerning the
exhaustiveness of the accounts, the precision of the records and the accounting balances
expressed in current monetary units.
In evaluations requiring estimates, approximation methods are only allowed if their impact
compared to more elaborate methods does not reach significant amounts with regard to the
objective of the faithful image.
In the presentation of the financial statements, the principle of significant importance results
in the obligation to show only information of significant importance 

IV- Organization of accounting

The organization of standardized accounting is intended to ensure the reliability of the

information provided and its timely availability.

1-OBJECTIVES OF THE ACCOUNTING ORGANIZATION

Accounting, the company's information system, must be organized in such a way that it
allows:
• enter, classify and record basic quantified data;
• establish in a timely manner planned or required states;
• periodically provide summary reports after processing;
• control the accuracy of data and processing procedures.
To be conclusive, the accounts must meet the requirements of regularity.
This is based on compliance with the principles and prescriptions of the CGNC.
The organization of the accounts supposes the adoption of a chart of accounts, the choice of
media and the definition of processing procedures.

2-BASIC STRUCTURES OF ACCOUNTING

Any company must meet the following basic conditions for keeping its accounts:
• keep the accounts in national currency;

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• use the double-entry technique guaranteeing the arithmetical equality of "debit" movements
and "credit" movements of accounts and the resulting balances;
• rely on dated supporting documents, kept, classified in a defined order, likely to serve as a
means of proof and bearing the references of their recording in the accounts;
• respect the chronological recording of operations;
• keep books and supports making it possible to generate the summary reports provided for by
the CGNC;
• allow reliable accounting control contributing to the prevention of errors and fraud and to
the protection of assets;
• control by inventory the existence and the value of the active and passive elements;
• allow for each accounting record to know its origin, content, allocation by type, summary
qualification as well as the reference of the supporting document.

3-CHART OF ACCOUNTS
The company's chart of accounts is a document which gives the nomenclature of the accounts
to be used, defines their content and, if applicable, determines their specific operating rules by
reference to the general business chart of accounts, (PCGE)
The accounting chart and its possible adaptations within the framework of professional
Accounting Plans, include an account architecture divided into homogeneous categories
called "classes".
Classes include:
• classes of situation accounts;
• classes of management accounts;
• special account classes.
Each class is subdivided into accounts subject to a decimal classification.
The accounts are identified by numbers with four digits or more, according to their successive
levels, within the framework of a decimal codification. The chart of accounts of each
company must be sufficiently detailed to allow the recording of transactions in accordance
with the requirements of the CGNC.
When the accounts provided for by the PCGE are not sufficient for the company to record all
its operations separately, it can open any necessary subdivisions.
Conversely, if the accounts provided for by the PCGE are too detailed in relation to the needs
of the company, the latter can group them together in a global account of the same level, more
contracted, in accordance with the possibilities offered by the PCGE and provided that the
regrouping thus carried out could at least allow the establishment of summary statements
under the conditions prescribed by the CGNC.

3-1-the main terms used in:

● The balance sheet:

Balance sheet accounts (assets and liabilities) describe the financial situation of the company
and are necessary at the end of the year for the establishment of the balance sheet.
- Assets include elements of heritage having a value
positive economic impact and translate for the company the employment of
resources.
- Liabilities reflect the origin of the company's capital. He makes
all the resources allowing him to carry out his jobs
● The income and expense account:
Charges: Charges are the sums or values paid or to be paid to third parties either in return for
materials, supplies, works and services, or exceptionally without compensation. Depreciation

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and provisions and exceptionally the net depreciation value of the fixed assets sold are also
included in expenses. Debt repayments and the amount of goods and receivables intended to
be immobilized or invested are therefore not considered as expenses.
The products: The products are the sums or values received or to be received either in
consideration for supplies, works or services executed or provided by the company, or
exceptionally without consideration. Income includes, by extension, fixed assets produced by
the company for itself, changes in inventories of products and services, reversals of
depreciation and provisions, foreign exchange transfers and proceeds from the disposal of
fixed assets. The sums received in payment of debts and the sums borrowed are therefore not
considered as income.

4-FINANCIAL STATEMENTS
The general business chart of accounts PCGE presents the classes of accounts and organizes
their list and nature according to two models according to the annual turnover achieved by the
company. The two models are the normal model and the simplified model.
The normal model, intended for all companies, is mandatory for those whose annual turnover
exceeds 7.5 million MAD (about 84000$) It requires the establishment of five summary
states:
- The Balance Sheet;
- The income and expense account;
- The statement of management balances
- Funding table;
- The status of additional information which refer in French acronym to L’état des
informations complémentaires (ETIC)
In addition to the 5 financial statements prepared, companies affected by the normal model
must have an accounting procedure manual.
The simplified model reduces the number of accounts as well as the financial statements to be
presented. It is adopted by companies with an annual turnover of 7.5 million DH or less.

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PART II – international accounting standards IFRS

In 1973 the International Accounting Standards Committee (IASC) was formed, there had
been a growing opinion in the accountancy profession that an international approach should
be considered in the development of accounting standards. The aim was to develop
accounting standards, to be called International Accounting Standards (IAS), with a general
objective of promoting international harmonization of accounting treatments

I-Presentation of IFRS standards:

The international financial reporting standards, IFRS are accounting standards, developed by
the International Accounting Standards Board (IASB) intended for listed companies or calling
on investors in order to harmonize the presentation and clarity of their financial statements. In
addition, IAS / IFRS (International Accounting Standards / International Financial Reporting
Standards) is a set of unique international rules to which listed companies, or subsidiaries of
large listed international groups are required to respond from 2005 to present their
consolidated accounts. The objective of this new regulation is to achieve greater transparency
in the analysis of the financial and economic situation of the company vis-à-vis third parties.

1-The principles of international accounting standards

The logic of these accounting standards is based on a few points in particular:
● the option of valuation at fair value of assets and liabilities,
● the primacy of substance over form,
● the primarily balance sheet approach, the priority taking into account of the investor's
vision,
● the principle of prudence subordinated to that of neutrality and relevance,
● the absence of specific texts for a sector of activity,
● the least recognition of intention accounting,
● the greater importance of interpretation in the application of standards.

2-The Benefits of Moving to IFRS

There are many benefits cited for organizations that use globally accepted financial reporting
standards. The first is the greater comparability that using such standards can bring. The
idea is that by using IFRS, the financial statements of reporting entities being produced from
a consistent framework and set of requirements should be comparable, allowing existing
and potential investors, as well as other users of the accounts, the ability to compare more
easily their reported results and financial position. This should, in turn, encourage investment.
There are also more direct benefits to businesses. For example, the use of financial reporting
standards that are consistent with industry peers across the world can open up business
opportunities and make companies themselves more willing to invest overseas, and not just
attract an inflow of overseas funding. The use of the same financial reporting framework
removes barriers to overseas investment.
However, despite the benefits outlined above, it cannot be denied that for many businesses the
transition to a new set of accounting standards is costly, time-consuming and disruptive.

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3-The objectives of IAS / IFRS:

1. Respond to the rapid growth of internalization of trade.

2. Develop a unique set of high quality accounting standards in the public interest.
3. Meet the needs of financial markets and give their financial statements better international
visibility and better credibility.
4. Ensure better comparability of financial statements within listed companies.
5. Meeting the information needs of investors.

PART III: Main divergences with the CGNC

I. Conceptual framework and objective of the standards

1. Existence of a conceptual framework
Unlike Moroccan accounting principles, IFRS standards have a conceptual framework that
guides the various bodies of the IASB in the development of standards. This framework also
guides the people in charge of closing the accounts, particularly in the absence of a standard
or interpretation specific to the preparation of financial documents. If the Moroccan repository
does not have a document called a conceptual framework, the CGNC essentially plays the
role.
2. Orientation of financial information
Under IFRS, financial information is oriented towards investors, whereas according to the
CGNC it retains a more general vocation often impregnated with legal and tax considerations.
3. Substance over form
Under IFRS, substance over appearance is a basic principle in the preparation of financial
statements.
As such, it is systematically retained by the IASB for the development of standards and
interpretation. This principle is also part of the basic principles for the establishment of
consolidated accounts in Morocco. However, in practice and because of the absence of precise
conditions for its application, it is much less systematic than in IFRS, its implementation
sometimes comes up against legal obstacles.
4. Intangibility of the opening balance sheet
According to this principle of the intangibility of the opening balance sheet, the opening
balance sheet for year N of an entity is equal to the closing balance sheet for year N-1. This
principle is applied in the Moroccan repository. Under IFRS, the intangibility of the opening
balance sheet is not stated and it is the principle of retrospective presentation that
dominates. Retrospective presentation means that the situation of a company does not only
depend on the current state but also on past and future events that may occur.
Conversely, Moroccan accounting principles do not provide for the possibility of partial
retrospective application when the effect of the change in method cannot be determined.
II. Presentation of financial statements
1. Annual financial statements
Under IFRS, the financial statements are made up of 5 mandatory and inseparable statements:
the balance sheet, the income statement, the cash flow statement, the change in equity and the
accompanying notes.

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In Morocco, the presentation of financial statements differs depending on the annual
turnover achieved by the entity:
- Companies with a turnover greater than 7.5 million dirhams present the balance sheet, the
income and expense account, the statement of management balances, the cash flow statement
and the statement of additional information.
These companies must also have an accounting procedure manual.
- Companies with a turnover of less than 7.5 million dirhams are exempt from the
establishment of the statement of management balances, the financial statement and statement
of additional information.
2. Definition of the asset
In IFRS, the definition is based on the concept of future economic benefits controlled by the
entity rather than on the concept of legal ownership and positive economic value, as is the
case in Moroccan accounting principles, where in particular:
- The obligation under IFRS to recognize as expenses certain elements recognized as assets
according to Moroccan accounting principles (for example brands created internally or
expenses to be spread over several years)
- A modification, in certain cases of the date of initial recognition of assets (date of transfer of
accounting ownership and date of transfer of control under IFRS).
3. Definition of expenses and income
The IFRS standards provide a precise definition of expenses (based on the concept of a
decrease in economic benefits resulting in an increase in equity) and income (based on an
increase in future economic benefits resulting in an increase in equity other than contributions
from shareholders).
4. Use of updating
Under IFRS, recourse to mandatory updating, therefore much more frequent than in
Moroccan accounting principles. For example, if the effect is significant, the discounting of
provisions, income, the entry cost of fixed assets or their cash flows for the determination of
any provisions for depreciation is mandatory.
It should also be noted that the Moroccan repository has a general chart of accounts making it
possible to record each transaction at its specified item. The IFRS do not have it and leave the
latitude to national regulators to deal with it.
We have established a reconciliation between the Moroccan accounting standards and
international standards. However, many points of difference persist between the two
standards, especially in terms of the presentation of financial statements and fundamental
accounting objectives.

⮚ There are seven differences in form between the two accounting systems summarized
in the table below.

Moroccan GAAP IFRS norms

Accounting chart proposed in the
CGNC
Standardized plots for summary
statements
Failure to take deferred tax into
account in individual accounts
Lack of accounting chart
No standardized formats for
financial statements
Accounting for deferred tax at the
level of individual accounts and
consolidated accounts

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Classification of assets according Classification of assets and
to increasing liquidity and liabilities according to the
liabilities according to increasing current/ non-current criterion
due date
Off-balance sheet commitments Accounting integration of the
are shown at the ETIC level Off-balance sheet
Insufficient annexes Richer annexes
Keeping cost accounting is Importance of keeping analytical
optional accounts
Source: Baghar. N “Accounting standards in Morocco: news, challenges
and perspectives” ENCG, Settat, 2017

Conclusion
Accounting in Morocco was endowed in 1992 with a legislative and regulatory framework
which made it possible to raise it to the rank of a true legal discipline. Emphasis must be
placed on the difficulties and shortcomings of the current Chart of Accounts. As a result, old
principles must be abandoned, new vocabulary introduced and certain procedures retained.
Similarly, IFRS standards should be considered as a source of inspiration for the
modernization of Moroccan accounting standards and not as a model to be copied as it is, the
studies carried out so far confirm that Moroccan companies are in favor of IFRS standards
because these standards are a logical consequence of the globalization of markets. The
transition to such a benchmark in the Moroccan context is not without posing some
difficulties because, in addition to the financial and human resources that it mobilizes, there
are divergences in the fundamental principles on which the two accounting systems are based.
The divergences between the two standards are not only of a technical nature which is
reduced to a few accountants and valuations but reflects the disparities in the level of
development between the developed countries and Morocco.

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