Level of compliance with international financial reporting standard (IFRS) by quoted companies in Ghana a study of selected quoted companies from Kumasi metropolis

Abstract

Before the adoption of International Financial Reporting Standard (IFRS) among firms every country had its own reporting accounting standards which gave room to conflict when it comes to comparing financial statements from different countries. The move of business into the global economy has brought a lot of challenges in comparability, reliability and objectivity; this has therefore increased the need to move accounting standards into globalization. This study was conducted to assess whether listed companies from Kumasi Metropolis were actually complying with IFRS since its adopted in 2007. The study used both primary and secondary data for data collection, primary source was questionnaires administered and for the secondary source published financial statements. The finding of the study revealed that over the years since compliance of IFRS has been made compulsory for all listed companies on the Kumasi Metropolis, the level of compliance is high and the study was also able to identify some factors that influence the adoption of IFRS. The study recommends that there must be more training and education for both preparers and users of financial information. Also develop these standards in curricula sectors such as the universities to create more awareness for accounting students. This reaches was conducted in 2019