Key takeaways
- The CGNC governs statutory accounts, the basis of Moroccan taxation.
- IFRS applies to the consolidated accounts of credit institutions.
- Major differences: fair value, economic substance, restatements.
Two frameworks, two functions
The CGNC is the mandatory framework for statutory accounts in Morocco: taxable income is built on it. IFRS serves the consolidated financial information of groups: in Morocco, credit institutions have prepared their consolidated accounts under IFRS since 2008, and companies making public offerings publish consolidated accounts under the frameworks accepted by the regulator.
The main differences
- Historical cost (CGNC) versus extensive use of fair value (IFRS)
- Substance over form in IFRS — illustrated by leases, recognised on the balance sheet (IFRS 16) while remaining off-balance sheet under CGNC
- Accelerated depreciation and regulated provisions specific to the Moroccan framework, with no IFRS equivalent
- Component approach to fixed assets under IFRS
- Discounting of long-term provisions under IFRS
What it changes in practice
For a Moroccan subsidiary of a foreign group, the reality is dual production: CGNC statutory accounts for local and tax obligations, and an IFRS (or group-standard) reporting package for consolidation. Restatements are recurring and must be industrialised: a documented bridge table, a dual-closing calendar, consistency controls.
Well organised, this dual production becomes a controlled routine; improvised, it is a source of discrepancies and tension at every closing. Our teams prepare IFRS packages alongside the statutory accounts, in the group's tools and calendar.
This article provides general information based on Moroccan regulations at the date of publication. It does not constitute personalised advice — rates, thresholds and rules change with each Finance Act. Contact the firm to review your specific situation.