The Development of Accounting and Reporting in Ghana Academic Article uri icon


  • In this paper, we examine the economic, political, and legal systems as well as the institutional factors that influence the accounting and disclosure practices in Ghana. The impact of International Financial Reporting Standards (IFRS) on disclosure is also investigated, as Ghana has recently completed full adoption. We find that the accounting and reporting practices are significantly influenced by legal, political, institutional, and economic factors and that the regulatory environment is neither effective nor efficient due to the weak monitoring and enforcement of compliance. Although there has been some recent progress, the Companies' Code, which is the corporate legal framework of Ghana, must be updated to reflect the dynamic nature of world operations. This study advances the course of standards setters, regulators, accounting practitioners, and policymakers to improve the corporate reporting and accounting practices. Urgent measures need to be undertaken to reform and build the capacities of institutions charged with the responsibility of regulating and monitoring Ghanaian accounting and reporting practices to ensure best practices and build investors' confidence.

publication date

  • December 2011