7 principes comptables au Maroc

7 Accounting Principles in Morocco

The accounting principles in Morocco, governed by the Code Général de Normalisation Comptable (CGNC), play a crucial role not only in ensuring a fair presentation of companies’ financial situations, but also in guiding external parties — the “third-party users” of accounting information.

These 7 accounting principles in Morocco include:

  • Going Concern Principle

  • Consistency Principle

  • Historical Cost Principle

  • Accrual Basis Principle

  • Prudence Principle

  • Clarity Principle

  • Materiality Principle

Each of these principles ensures the credibility and reliability of financial information, enabling third-party users to make informed decisions based on consistent and standardized data.

1. Going Concern Principle

The going concern principle assumes that the company will continue operating for the foreseeable future. This assumption is critical, as it influences the valuation of assets and liabilities.

If there are indications that the company may not continue (e.g., financial difficulties, major litigation), financial statements must reflect this reality. Otherwise, the company must be treated as a going concern, applying standard accounting rules without liquidation assumptions.

2. Consistency Principle

The consistency principle requires that companies apply the same accounting methods from one fiscal year to the next.

This consistency allows users of financial statements — including tax authorities, banks, investors, and partners — to make meaningful comparisons over time and to assess financial performance reliably.

A change in accounting methods is permitted only under exceptional circumstances and must be disclosed clearly, along with its impact.

3. Historical Cost Principle

Under the historical cost principle, assets and liabilities are recorded based on their original acquisition cost, rather than their market value.

This approach ensures objective and verifiable financial information. While it may create discrepancies with current market values, it protects financial statements from subjective revaluations.

Exceptions to this rule exist, particularly when accounting standards specifically allow revaluations (e.g., in cases of impairment or fair value adjustments).

4. Accrual Basis Principle

The accrual basis principle requires that income and expenses be recorded in the accounting period to which they relate, not necessarily when cash is received or paid.

For example, if a sale is made in December but paid in January, the revenue must be recognized in December’s accounts.

This principle ensures that financial statements accurately reflect the company’s financial performance over the period concerned.

5. Prudence Principle

The prudence principle imposes caution in recognizing gains and accelerates the recognition of potential losses.

In other words, it is preferable to understate assets and income rather than to overstate them.

For example, if a customer has payment difficulties, a provision for doubtful accounts must be recorded, even if the payment has not yet been definitively lost.

This principle thus aims to prevent the presentation of an overly optimistic financial position.

6. Clarity Principle

The clarity principle requires that financial information be presented clearly, precisely, and understandably for users.

This means that accounts must not be misleading, and that disclosures must be sufficient to allow an informed understanding of the company’s situation.

Complex or technical information must be presented in an accessible manner, especially for non-specialist third parties such as investors, partners, or employees.

7. Materiality Principle

The materiality principle recognizes that not all information needs to be treated with the same level of rigor.

Only material information — that which could influence users’ economic decisions — must be strictly accounted for and disclosed.

Minor errors or omissions, those that do not affect decision-making, do not necessarily compromise the reliability of financial statements.

Conclusion

Respecting these 7 accounting principles in Morocco is essential to guarantee the reliability, comparability, and transparency of financial information.

It strengthens the trust of third-party users, such as:

  • The tax administration (for verifying taxable income),

  • Banks (for assessing creditworthiness),

  • Business partners and investors (for analyzing financial health).

Beyond mere compliance, these principles contribute to a culture of financial rigor and good governance, both indispensable in today’s Moroccan and international business environment.

To learn more about Moroccan accounting standards, see our full guide on the Moroccan General Accounting Plan (PCG).