Abstract:
This study examined the extent to which companies listed on the Ghana Stock Exchange (GSE) comply with
International Financial Reporting Standards’ (IFRSs) presentation and disclosure requirement. With the aid of a
checklist, an index of compliance was devised to quantify the level of compliance. This was applied to the 2010
financial statement of 31 companies listed on the GSE. Descriptive statistics was used to analyse the extent of
compliance by companies categorised in line with industry classification of the GSE. The study further examined
relationships between company attributes and the extent of compliance. In addition, factors influencing the
extent of IFRSs compliance are revealed using correlation and multiple regression analysis. ANOVA was
employed to explore statistically significant differences between industry types with regards to their extent of
compliance.
The findings revealed an overall mean compliance of 85.8% in Ghana. Company attributes of size, profitability,
auditor type, internationality and industry type associate positively with IFRSs compliance. ANOVA results
revealed differences between industry types with regards to their compliance rate.
The study recommends that the Institute of Chartered Accountants Ghana liaise with regulators to organise
regular training programmes for companies to provide a practical guide for full compliance since the IFRSs
receive continuous amendment.
