Half day training on International Financial Reporting Standards (IFRS) was provided to heads of finance coming from various organizations. The goal behind Financial Reporting Standards is to achieve uniformity globally. Addis Chamber organized the training at Harmony Hotel, on April 12, 2016.
The system makes accounting system simple and provides guide as to what to include and not to include in the financial statement. More than 100 nations have implemented it and gradually all countries are expected to adopt IFRS. It believed that US companies may be required to subscribe to it.
Ethiopia put in place the financial reporting proclamation 847/2014 and has established accounting and auditing board of Ethiopia (AABE).
The effective date of the proclamation is December 5, 2014 and it may not exceed five years. It is possible to design a local version of the system but it cannot be called IFRS.
Nations have their own respective financial reporting system, and this has been one of the challenges faced by International Financial Reporting System, the trainer indicated.