International Financial Accounting Standards And The Continent Of Africa

Abstract

In response to the increased globalization of both commercial and financial markets and increased frequency of corporate scandals, the International Federation of Accountants (IFAC) has spearheaded an international initiative to standardize corporate financial reporting. This effort involves setting the standards, creating a process of adopting the standards that is tailored to the needs of each nation, overcoming the challenges of implementation that many countries face and ensuring continued observance of the standards once they are adopted. This paper focuses on the implementation of IFAC standards in the African Continent. An examination of IFACs mission, its membership requirements and ongoing compliance program, and its assistance to developing nations will illustrate the current status of African nations in the standardization process. The countries representing the African continent possess many promising opportunities for growth and prosperity in the global economy and also present many distinct obstacles in their effort to embrace and implement the IFAC initiative. The approach used in this paper is to examine broadly the challenges faced by the different regions within Africa. This approach takes into account political, economic, cultural and religious differences found in distinct regions within the continent.