The three-tier system of accounting entails the ordinary system, the simplified system and the minimum cash-based system. The ordinary system for presenting financial statements and keeping accounts applies to all companies, except for the small size companies which allows a simplified system to be applied. In this context, the size of a company is assessed by reference to its turnover during the financial year in question.
A company may thus use the simplified system instead of the ordinary system if its turnover during the financial year in question does not exceed 100 million Francs.
Very small businesses may use a third system known as the minimum cash-based system and constitutes an exception to the general provisions laid down by the Uniform Act of Ohada. For a company to be allowed to use this system, the year’s income must not exceed a threshold of between 10 million francs and 30 million francs depending upon the type of activity of the company.
Financial statements are to be prepared in accordance with models set out in the Ohada Uniform Act except in the case of banks and other financial establishments and insurance companies which are subject to specific accounting models.