THE ADOPTION OF THE INTERNATIONAL ACOUNTING STANDARDS IN GHANA AND ITS IMPACT ON BUSINESSES.

Abstract

International accounting standards are global standards that have been accepted in many countries and by various business organizations. Ghana has adopted it and expects companies, private enterprises and state owned enterprises to apply them from January 1, 2007 whiles small and medium sized enterprises as well as ministries, departments and agencies in the public sector to start using them from January 1, 2009.International accounting standards adoption provides great opportunities to business organizations in Ghana. It has been identified that, International Accounting Standards (IAS) opens Ghanaian businesses to the international market, lenders, investors and other stakeholders easily. It makes financial statements of Ghanaian businesses easily understandable and comparable to stakeholders in the international market.It will also help enhance public confidence in these businesses and can contribute in stimulating national development. This project explores the impact that the International Accounting Standards will have on businesses in Ghana, the need for the International Accounting Standards (IAS) and the factors that can impede the successful implementation of International Accounting Standards in Ghana. The project also outlines some measures that need to be taken to enhance its (IAS) successful implementation and to enhance its efficiency in Ghana. It is the fervent belief of the researcher that, this study would conscientise government, policy makers, investors and businesses organizations on the need for International Accounting Standards, the impact of International Accounting Standards on businesses and the impediments to the successful implementation of International Accounting Standards and the appropriate measures to ensure its effective implementation in Ghana.