OHADA Jurisdictions Commit to Global Accounting Standards

In a major move, OHADA (Organisation pour l’Harmonisation en Afrique du Droit des Affaires) and its member jurisdictions have publicly committed to adopting International Financial Reporting Standards (IFRS).

Full Adoption of IFRS Standards

As of January 1, 2019, all OHADA jurisdictions have adopted IFRS Standards for the consolidated financial statements of listed companies and companies seeking financing in a public capital market. While all other companies are permitted to use IFRS Standards, they are not required to do so.

• Companies with more than 100 security holders must adopt IFRS Standards, regardless of whether their securities trade in a public market or not.
• The adoption of IFRS Standards is mandatory for listed companies and companies seeking financing in a public capital market.

Translation of IFRS Standards

IFRS Standards have been translated into French and Portuguese, the national languages of OHADA jurisdictions. These translations are done in conformity with the requirements of the IFRS Foundation to ensure ongoing translation of the latest updates to IFRS Accounting Standards.

No Modifications or Endorsement Required

OHADA has not made any modifications to individual IFRS Standards nor does it require endorsement for new or amended standards. Instead, the organization requires companies to adopt IFRS Standards as issued by the International Accounting Standards Board (IASB).

SYSCOHADA Alternative

For small and medium-sized enterprises (SMEs), OHADA has not adopted the IFRS for SMEs Accounting Standard. However, all SMEs are required either to follow SYSCOHADA or use full IFRS Standards as issued by the IASB.

The adoption of IFRS Standards is a significant step towards promoting transparency and consistency across the region. It also demonstrates OHADA’s commitment to adopting high-quality global accounting standards.