The Institute is the legal body to prescribe the financial reporting standards and auditing standards in the country. see Accountant Act and Companies Act
In execcution of this mandate the Institute has adopted in whole the International Financial Reporting Standards (IFRS) for application as accounting and reporting standards in Lesotho. It has adopted both the full IFRSs and the IFRSs for SMEs
In the same manner the institute has adopted the International Standards on Auditing (ISA) for application as auditing standards in Lesotho.
Both the IFRS and ISA have been implemented.
LIA has also adopted the International Public Sector Accounting Standards (IPSAS) and is in progressive implementation of such as it is working hand in hand with the government of Lesotho.