A national workshop has examined the launching of the International Financial Reporting Standards (IFRS) in Ethiopia.
More than 100 countries across the globe have adopted IFRS and Ethiopia is set to be the latest country to join the group.
The Accounting and Auditing Board of Ethiopia (AABE) has disclosed that IFRS bears huge impact in modernizing the auditing and accounting sector.
Director General of the board, Gashe Yemane explained that the Ethiopian government has recognized the importance of high quality financial reporting and its contribution to attract investment opportunities from around the world.
Gashe stated that high quality financial reporting would give rise to a widening range of quality public services, sustainable economic growth, increased employment, and ultimately a better opportunity to tackle poverty and inequality.
“The board has been striving to ensure that the public in general and investors in particular, gets reliable and accurate financial information that will enable them make informed decisions,” he said while speaking of activities by AABE.
The director general spoke during today’s workshop mentioning ongoing activities by his board to promote and sustain public confidence through sustaining credibility and reliability of financial reporting in Ethiopia.
“The overriding goal of the Accounting and Auditing Board of Ethiopia is the protection of public interest,” he confirmed.
However, according to Gashe, the number of qualified professional accountants and auditors available in Ethiopia at present is insufficient to bring fruitful results.
Less than 400 qualified professional accountants are available which he said is a “very low number even by African standards.”
The director general also urged stakeholders in the financial reporting chain to work towards raising the quality of financial reporting in the country to the highest standard.
Head of the Association of Chartered Certified Accountants (ACCA) Netsanet Tsegaw on his part said strong international standards like IFRS are needed to create competent and advanced business environment.
“Investors look at investments on an international basis. With IFRS they will benefit from greater transparency and comparability, less volatility and consequently less risk,” he stated.
Netsanet added that the implementation of IFRS will solve limitations of accounting and auditing and help modernize the sector.
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