Corporate Financial Reporting – A Study on the IFRS Regime in Ghana and Around the World
Keywords:
International accounting, financial reporting, Banks, IFRS standards, GhanaAbstract
The International Financial Reporting Standards (IFRS) is regard as a single set of high-quality globally accepted accounting standards issued by the International Accounting Standards Board (IASB). This study aims at providing insight on the adoption and the effective implementation of IFRS in Ghana. It also explores the progress of the IFRS reporting regime around the world. The study employed both qualitative and quantitative research methodology with a descriptive research design. Data was collected through survey questionnaire with purposive sampling technique from a sample of 20 banks including those unlisted and listed at the Ghana Stock Exchange. Results revealed that there is a significant positive association between the influence of global institutions and the effective implementation of IFRS among the banks in Ghana. It was also discovered that over 40 African nations have adopted or converged with IFRS. In all approximately 150 jurisdictions in the world including the G20 require or permit the use of IFRS for domestic and foreign public firms. Thus, the study contends that whether, the standard setters of a given jurisdiction ‘cherry pick’ some parts of IFRS, whilst others adopt it as given, the effect is the same to a large extent because to say the obvious, ‘to be unconnected to IASB’s global standards’ is to fall behind. The study recommends that regulatory authorities and management of the banks need to collaborate with global institutions in holding IFRS workshops in order to enhance its effective implementation.
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