The Global President of the Association of Chartered Certified Accountants (ACCA), Mr. Joseph Owolabi, has urged Ghanaian businesses to adopt Integrated Reporting in their financial reporting to attract investors.
Speaking during an interview, Mr. Owolabi noted that the new financial reporting structure must be adopted by firms, especially those in Ghana, because integrated reporting has become a prerequisite for investors interested in investing in enterprises.
Integrated Reporting is a financial reporting framework that highlights a company’s targets, governance, strategies, and performance over time, demonstrating how they create value for shareholders, the community, and the economy at large.
According to the ACCA Global President, the Integrated Reporting framework is an essential tool for organizations looking to attract investors and establish reputation in the marketplace – since it increases a company’s responsibility and openness in financial reporting.
Despite the inherent cost barriers to Ghanaian businesses in adopting the new financial reporting framework, Owolabi emphasized that there are significant opportunities and advantages for those that do.
“Investors demand Integrated Reporting because they want transparency in a company’s financial reporting, including knowledge of the business model, future plans, and risk exposure and management strategies.”
Mr. Joseph Owolabi
Owolabi’s comments come at a time when Ghana is seeking to attract more foreign investment and Integrated Reporting could be a valuable tool to support this aim.
Ghana has a relatively small economy compared to other African nations, but it has demonstrated considerable potential for growth.
Commenting on other major significance of the IR, Mr. Owolabi pointed out that adopting Integrated Reporting puts organizations in a better position to respond to shifting market conditions, which can have a big influence on investors, adding that; “the report allows businesses to demonstrate how they are managing risks and opportunities, which can provide investors with a greater level of confidence in their investments.”
Owolabi Points Out Barriers That Pushes Ghanaian Businesses Away From The IR Framework
According to the Global President, in spite of the potential advantages of adopting Integrated Reporting, Ghanaian companies confront major cost obstacles in putting the new framework into practice. Since many companies in the nation are small, they lack the funding needed to create the appropriate reporting systems.
Nevertheless, he disclosed that the ACCA is dedicated to helping Ghanaian companies embrace integrated reporting and has offered advice on how to do so affordably.
Integrated Reporting has become a critical tool to support the growth of the business sector of the Ghanaian economy, as the country seeks look out for solutions to attain a transparent business operating sector.
While cost barriers exist, the potential benefits of adopting the framework are significant. The ACCA’s commitment to supporting Ghanaian businesses in adopting Integrated Reporting is a positive step towards realizing these benefits.
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