IFRS in Africa presentation gives comparison between Ghana and Nigeria how IFRS has been implemented in both countries and the challenges they both faced with IFRS adoption.

1. 2015 1
VINCENT KONADU TAWIAH
IFRS IN AFRICA
GHANA AND NIGERIA

2. INTRODUCTION
 About 130/200 countries are using IFRS (66%) globally
 About 20/54 countries in Africa (37%)
 18 have completely adopted
 2 have converge
 1 allow MNC to report

4. GHANA VS NIGERIA

5. SIMILARITIES
 Pre-independence accounting codes (UK codes)
 UK based national standards
 Same regional accounting bodies (AABWA, PAFA

6. PRE-IFRS COMPARISON
Parameter Ghana Nigeria
Accounting body Institute of Chartered
Accountants, Ghana (ICAG)
Institute of Chartered
Accountants, Nigeria (ICAN)
Association of National
Accountants of Nigeria (ANAN
Standard setters Ghana National Accounting
Standard Board (GNASB)
Nigerian Accounting Standard
Board (NASB)
Standard Title Ghana National Accounting
Standards (GNAS)
Statements of Accounting
Standards (SAS)
Year of first issue 1993 1984
Number of
Standards
28 30

7. POST-IFRS ERA
Parameter Ghana Nigeria
IFRS status Complete adoption Complete adoption
Year 2007 2012
Effectiveness of
new IFRS
Effectives as and when is
enforceable by IASB
Effective by notification of
FRC
IFRS Authority Accounting standards
Advisory Committee
(ASAC)
Financial Reporting
Council (FRC)
Accounting
body
ICAG ICAN, ANAN

8. STD IFRS GNAS SAS
IAS 1 Changes in Equity Not required Not required
IAS 12 Deferred tax Only for depreciation Only for depreciation
IAS27 Non-controlling
interest
No disclosure in income
statement
No disclosure in income
statement
IAS23 Disclosure on
borrowing cost
No disclosure on
capitalization rate
No specific standard
IAS 38 Intangible asset No specific standard No specific standard
IAS 40 Investment property No specific standard No specific standard
IAS 41 Agriculture No specific standard No specific standard
IFRS 5 Discontinued oper. No specific standard No specific standard
IFRS 8 Segment reporting No primary or secondary,
only industry and
geographical
Geographical grouping
only.

9. SIGNIFICANT NOTES
 Ghana join IFAC in 1977
 Ghana first adopted IAS btn 1963 to 1993
 IAS/IFRS and national standards where used together
before the formal adoption in both countries
 Drivers of IFRS; MNC, IMF, UN, World Bank
 Nigerian is more strong in the IFRS implementation
than Ghana

10. TRANSACTIONS
 Fair value measurement (IFRS 13); no market data
to support recordings so estimate are mostly used
or foreign prices
 Hedge accounting (IFRS 9) no derivative markets
for prices

11. AGONY OF IFRS
 Fair value measurement applicability
 The big auditing firms disease
 Cost benefit analysis
 Principle base IFRS
 SME dominance

12. CONCLUSION
 IFRS may be ready for the world but the fact is if
efficient economics like India, China, Canada, USA, are
playing international power politics by converging not
adopting, then I believe that Africa is not ready for IFRS
now due to the inefficient market and high information
asymmetry.