OHADA Uniform Accounting Act Compliance Assessment for Public Limited Companies

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OHADA Uniform Accounting Act Compliance Assessment for Public Limited Companies

July 30, 2022 BUSINESS & ECONOMICS 0

African nations that speak French have made and are still making extraordinary efforts to align their domestic financial reporting system with international financial reporting standards (IFRS). A significant step towards harmonizing reporting practices domestically and internationally was the transition from the OCAM streams (effective in 1985) to the OHADA Uniform Act (effective in 2001), and now to the OHADA Uniform Act on Accounting and Financial Reporting, which includes 17 member countries. This empirical study investigates whether the efforts at harmonization, particularly in the wake of the 2001 standards, have successfully converged the accounting procedures of businesses. The study specifically looks into how closely public limited liability businesses abide by the OHADA Uniform Act and whether their adherence has increased over time. The annual reports for 2008 and 2009 from three public limited companies in the OHADA zone that transform their financial statements into IFRS were used in the study. The compliance index and closeness ranks have been used in data analysis. Results show a comparatively high level of OHADA Uniform Act on Accounting and Financial Reporting compliance. The results also demonstrate convergence in limited company accounting standards across member nations as they were found to be remarkably compliant, particularly in nations that have adopted the Statistics and Tax Returns (or “DSF”) as a reporting system.

Author(s) Details:

Michael Forzeh Fossung,
School of Business Studies, Fomic Polytechnic University, Buea, Cameroon.

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Keywords: Compliance, divergence, convergence, harmonisation of accounting standards, OHADA uniform accounting act, international financial reporting standards


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