Some of these factors may be responsible for non-compliance:
Business culture in Ghana
Level of understanding of IFRS
The impact of compliance
Knowledge gap
Sometimes, deliberate to cut corners.
Level of international business relationship
Policy enforcement by the tax authority/Government.
These could be some of the factors contributing to low compliance with IFRS in Ghana:
1. Firm characteristics, such as small size
2. Weak Governmental Regulations
3. There are very few benefits from complying to IFRS
There are many factors that might affect compliance and non-compliance with IFRS in Ghana and the like emerging markets. You can consult my paper for more details of such factors as below:
access for editors
Disclosure practices in Egypt: what are factors beyond the low level?
by Tariq H. Ismail; Nermeen F. Shehata
International Journal of Economics and Accounting (IJEA), Vol. 3, No. 3/4, 2012
May be that Gahna is not a member in IFAC, and there is no obligation for firms in Ghana to do so.
The Institute of Chartered Accountants—Ghana (ICAG) has been an IFAC member since 1982. I think Governmental Regulations is very important.
In addition to my previous comment, the factors that may affect compliance with IFRS in Ghana are political and economic conditions, legal system and regulatory framework, nature of the capital market, and prevailing culture.
LA cultura predominante tal como lo menciona un colega anteriormente es una de las bases que se están dando no solo en Ghana , si no en otros países donde las leyes de convergencias o adopción tienen años de existencia.
El gremio de los Contadores , Contables o denominación en Ghana debe tener disposición a su aplicación , pero esto va de la mano en la medida que los entes gubernamentales y privados , exijan dicho cumplimiento cuando se deban reportar los Estados Financieros y demás información anexa bajo las IFRS.
IFRS is a new accounting and reporting rule that is hardly applied correctly by any third world economy including Ghana. High compliance cannot be achieved due to a dearth of expertise on the new accounting and reporting framework. Éducation, on the job training through workshops,seminars and conferences are therefore needed to enhance high or even full compliance.
IFRS is a new reporting rule. the following may be reasons for low adoption in Ghana:
(1) The characteristics of companies operating in the country,i.e small or medium scale company.
(2) Has the existing legislation amended to pave way for new legislation?
(3) Legislation as to when every company operating in the country to start adoption of the new rule.
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