Deloitte engages SMEs in global financial reporting standards

Companies in Ghana would have to comply with the International Financial Reporting Standard (IFRS) by end of 2013 if their financial statements are to be globally compatible.

The implementation of the standard is important in harmonizing Ghana’s financial accounting sector, to assist various users of financial statements in making informed decisions, said Felix Nana Sackey, Deloitte Country Managing Partner.

The IFRS was launched in Ghana in January 2012, to replace the local Ghana National Accounting Standards.

According to Nana Sackey, most firms and accounting professionals in the country are yet to be compliant.

 

“Currently it’s only the companies who have public interest that are complying”, he said. These include banks, insurance firms and firms listed on the Ghana Stock Exchange.

Nana Sackey is however confident the rate of adoption would increase with the revised IFRS for small and medium entities.

The IFRS for SMEs is a modification and simplification of full standard, aimed at meeting the needs of private company financial reporting users and easing the financial reporting burden on private companies through a cost-benefit approach.

It contributes to enhancing the quality and comparability of SME financial statements and assists operators in gaining access to finance.

In collaboration with the Osei Tutu II Centre for Executive Education & Research (OTCEER), Deloitte, leading audit and financial advisory firm has been engaging accounting and business professionals in Kumasi on best industry practices.

The seminar, according to Nana Sackey, is to support small businesses to clearly identify and deal with the challenges of adopting the new set of standards for the preparation of financial statements.

He acknowledged adoption of the IFRS for SMEs would face some challenges, hence the need for continuous training.

Deloitte is therefore committed to supporting the Institute of Chartered Accountants Ghana (ICAG) in building capacity of professionals to work with the new standards, he stated.

Story by Kofi Adu Domfeh