Ohada Accounting

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Aug 3, 2024, 6:16:34 PM8/3/24

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This paper compares the accounting quality of the International Financial Reporting Standards (IFRS) and the Organization for Harmonization of Businessin Africa (OHADA) standards. These accounting standards are primarily used in the French-Speaking sub-Saharan countries. Literature argues that OHADA standards blend the French-German and the Anglo-Saxon accounting traditions to meet the requirements of a reporting framework for a globalized economy and hence they are like IFRS. Using a casual-comparative research design and collecting data from commercial banks using these two types of accounting standards, this study finds that the quality of accounting differs in IFRS and OHADA in terms of earnings management and loan loss recognition. Commercial banks reporting under IFRS show indices of less earnings management and less conservatism as compared to those reporting under OHADA standards. This paper contributes to literature by quantitatively complementing existing qualitative research which has concluded that OHADA standards should come up with substantial revisions in their conceptual framework if they have to meet their objective of reporting the real economic activity of a firm.

Accounting has played a significant role in globalization through instruments like the International Accounting Standard Board (IASB), the International Federation of Accountants (IFAC) and the International Financial Reporting Standards (IFRS) which have harmonized global business practices. With the spread of globalization, the persistence of local realities has become a global issue. While IFRS has been adopted across the world, local contexts are impeding its smooth implementation.

The findings also show that the professionalization of accounting was context bound and was influenced by the accounting environment in Rwanda and that professionalization contributed to conflict prevention and resolution among accounting practitioners. The study also shows that the government played a big role in the development of accounting as a profession.

Redovisning har spelat en betydande roll i globaliseringen genom instrument som International Accounting Standard Board (IASB), International Federationen of Accountants (IFAC) och International Financial Reporting Standards (IFRS) vilka har harmoniserat global affrspraxis. Med spridningen av globalisering har bestndigheten i lokala realiteter blivit en global frga. Medan IFRS har infrts ver vrlden har den smidiga implementationen hmmats i lokala kontexter.

Denna studie undersker detta fenomen i den ruandiska kontexten genom att diskutera hur IFRS har infrts av affrsbanker i Ruanda och i afrikanska lnder sder om Sahara. I Ruanda influerades IFRS-infrandet av landets ekonomiska kontext (trngande behov av rekonstruktion), social kontext (ruandier med olika redovisningstraditioner beroende p konflikten och migrationen av folk ver regionen och i vrlden och deras tervndande till sitt hemland) och den politiska kontexten (kolonialt arv och redovisningsinitiativ frn sjlvstndiga afrikanska stater och Ruandas regionala och internationella intergrationspolicies).

Mina resultat indikerar att infrandet av IFRS gjordes efter intensiva frberedelser och dess implementering vervakades eftersom man trodde att dessa standarder skulle katalysera regeringens ekonomiska utvecklingsml. Resultaten visar ocks den dubbelriktade relationen mellan redovisning och den omgivning i vilken den verkar. Medan infrandet av IFRS vacklade hos den rdande omgivningen, formade dessa standarder ocks en del av landets strategi fr ekonomisk utveckling och en mekanism fr att frmja rttvisa bland dess medborgare.

Resultaten visar ocks att professionaliseringen av redovisning var kontextbundenoch pverkades av redovisningsmiljn i Ruanda och att professionalisering bidrog till attfrhindra och lsa konflikter hos redovisningspraktiker. Studien visar ocks attregeringen spelade en stor roll i utvecklandet av redovisning som profession.

I have installed the sysOHADA module for accounting in order to use it as the chart of accounts for the company I have created, but when configuring the company the only chart of accounts proposed2 is the minimal account chart, whereas in the account type models the OHADA chart of accounts 2001 and 2016 are added. How can I switch to the OHADA chart of accounts?

The OHADA Uniform Act on Accounting Law and Financial Reporting (UAAFR), adopted by the Council of Ministers of OHADA on January 26, 2017 in Brazzaville (Congo), was published in the Official Gazette of the Organization on February 15, 2017. With more than 1,200 pages, the special edition devoted to the publication of this important instrument also contains the revised OHADA accounting system (SYSCOHADA), namely: the OHADA general accounting plan and the consolidated and combined accounting rules. This important edition also contains Decision No. 05 of January 26, 2017 fixing the costs of issuing documents at the Registry of the Common Court of Justice and Arbitration (CCJA).

In accordance with the instructions of the Conference of Heads of State and Government, the updated UAAFR and SYSCOHADA will be the only accounting reference in all OHADA Member States and will enter into force on January 1st, 2018 for personal accounts, and on January 1st, 2019 for consolidated accounts, combined accounts and financial statements prepared in accordance with IFRS.

The special issue of the Official Journal on the publication of this important instrument is available for sale at the Permanent Secretariat of OHADA. The UAAFR and its appendix may also be downloaded here.

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Abstract: This paper examines the ongoing transition to the revised Organisation for the Harmonisation of Business Law in Africa Act on Accounting and Financial Reporting for companies in general and to the International Financial Reporting Standards for listed and group companies with a particular focus on recent institutional developments and corporate concerns. The study used 80 professional accountants, most of whom were members of the Institute of Chartered Accountants of Cameroon and academics. Using the descriptive statistics, the study shows that the transition to the revised OHADA brings about a high level of comparability and transparency of the financial statements, that the International Financial Reporting Standards can be implemented in Cameroon (but not fully), and that the benefit of the transition exceeds the cost. Keywords: perception; OHADA accounting; transition; IFRS; comparability

Fossung MF, Ntoung LAT, Santos de Oliveira HM, Pereira CMF, Bastos SAMC, Pimentel LM. Transition to the Revised OHADA Law on Accounting and Financial Reporting: Corporate Perceptions of Costs and Benefits. Journal of Risk and Financial Management. 2020; 13(8):172.

Fossung, Micheal Forzeh, Lious Agbor Tabot Ntoung, Helena Maria Santos de Oliveira, Cludia Maria Ferreira Pereira, Susana Adelina Moreira Carvalho Bastos, and Liliana Marques Pimentel. 2020. "Transition to the Revised OHADA Law on Accounting and Financial Reporting: Corporate Perceptions of Costs and Benefits" Journal of Risk and Financial Management 13, no. 8: 172.

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