Accounting Standards Improvement Deal Between England, Africa Inked
The Institute of Chartered Accountants in Ghana, Africa, and England and Wales have signed a pact for the first time to improve accounting standards in both countries.
According to the Institute of Chartered Accountants in Ghana, West Africa will take part in driving the global economy with the plan to strengthen the financial reporting in the region.
On May 15, the International Accounting Standards Board (IASB) completed the improvements to the accounting standards for off balance sheet activities and joint arrangements.
The improvements add to IASB’s and the Financial Accounting Standards Board’s (FASB) new guidance on fair value measurement and disclosure requirements for International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP).
The deal between the Institute of Chartered Accountants in Ghana and the Institute of Chartered Accountants in England and Wales is the first step in a project to boost accounting standards in both countries. The project will run for three years.
Ghana’s accounting trade body will offer professional development to members in an attempt to align the auditing practices with the international standards like the International Financial Reporting Standards (IFRSs).
According to JFO Blankson, president of the Institute of Chartered Accountants in Ghana, the “robust financial reporting hampers sustainable economic growth.”
“A strong professional body is essential for developing and maintaining this – as well as being the cornerstone of strong technical and ethical standards,” Blankson said.
Blankson said the accounting standards improvement will run across West Africa, aside from Ghana, in view of his statement.
On March 2011, the Emirates Securities and Commodities Authority inked another pact to boost its knowledge on different issues about auditing and accounting in the Middle East.
The deal was signed with the UAE Accountants and Auditors Association to improve training and sharing best practices.
Abdul Karim Al-Zarouni, chairman of the Association, believed the memorandum of understanding would enhance joint cooperation and strengthen the partnership between UAE’s financial services regulators.