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The state of IFRS in Africa

Vincent Tawiah (Dublin City University, Dublin, Ireland)

Journal of Financial Reporting and Accounting

ISSN: 1985-2517

Article publication date: 2 December 2019

804

Abstract

Purpose

The purpose of this paper is to appraise existing literature on International Financial Reporting Standards (IFRS) in Africa. It covers all 54 African countries and their membership in regional and international accounting bodies.

Design/methodology/approach

This paper uses qualitative research methods, including review and synthesis of a variety of archival materials.

Findings

Unlike the numerous variations in IFRS adoption on other continents, IFRS countries in Africa have adopted the standards as issued by International Accounting Standard Board (IASB). However, most countries are slow to implement the ROSC (AA) recommendations for IFRS adoption due to lack of institutional and professional capacity. With regards to the unintended consequences, IFRS adoption has made international professional qualifications such as Association of Certified Chartered Accountants popular in Africa; hence, national accounting qualifications are not attractive to prospective accountants. Similarly, IFRS adoption has created a competitive advantage for the Big4 audit firms because companies in IFRS countries prefer the services of the Big4 to that of the local audit firms.

Originality/value

It is concluded that international organisations that recommend IFRS to Africa, such as the IFRS foundation, IMF and World Bank, should build the sustainable professional and institutional capacity of the countries before persuading them to adopt IFRS, because in Africa, adopting a law is easy but operationalising it has always been the challenge.

Keywords

Citation

Tawiah, V. (2019), "The state of IFRS in Africa", Journal of Financial Reporting and Accounting, Vol. 17 No. 4, pp. 635-649. https://doi.org/10.1108/JFRA-08-2018-0067

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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