An extraordinary board meeting of the justice and finance ministers of OHADA member States was held on January 26, 2017 in Brazzaville. During this meeting, it was decided that OHADA public companies would be required to publish their financial statements in accordance with the International Financial Reporting Standards (FIRS), in addition to their obligation to publish these same statements in accordance with SYSCOHADA regulations and the specific accounting practices applicable to their respective industries.
This new requirement was aimed at guaranteeing the quality and comparability of the financial data gathered from OHADA public companies. These companies would be required to provide additional financial information to the public including balance sheets, income statements, cash flow statements, and additional information about their shareholders. The extraordinary board meeting did not specify the date of entry into force of this new requirement.
This new obligation to publish financial statements in accordance with the IFRS aims to harmonize the accounting norms within the African Union and, more generally, at the international level.
It should be noted that in Europe, especially in France, EU Regulation n°1606/2002 dated July 19, 2002 mandated that all listed EU companies whose accounts are consolidated prepare their financial statements in accordance with the IFRS starting January 1 2005, with the objective to contribute to the well-functioning of the Community capital market
In 2007, the United States’ Security Exchange Commission authorized companies deemed “foreign” to establish their accounts in accordance with the IFRS, as American companies are required to conform to the US GAAP (United States Generally Accepted Accounting Principles).
Jan 26, 2017 | Business Law, Corporate Law, OHADA Law