Ghanaian businesses urged to adopt Integrated Reporting to attract investors
Ghanaian businesses are being urged to adopt Integrated Reporting in their financial reporting to attract investors by Joseph Owolabi, the Global President of the Association of Chartered Certified Accountants (ACCA).
In an interview with Norvanreports, Owolabi explained that Integrated Reporting has become a requirement for investors interested in investing in businesses, making it essential for businesses, particularly those in Ghana, to adopt the new financial reporting framework.
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.
Owolabi stated that the Integrated Reporting framework improves a company’s accountability and transparency in financial reporting, making it a crucial tool for businesses seeking to attract investors and gain credibility in the marketplace.
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.
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.
The adoption of Integrated Reporting could attract investors looking to tap into Ghana’s potential, as it provides a clear overview of a company’s financial position and the potential risks and opportunities associated with investing in it.
Moreover, businesses that adopt Integrated Reporting are better placed to respond to changing market conditions, which can have a significant impact on investors. Integrated Reporting allows businesses to demonstrate how they are managing risks and opportunities, which can provide investors with a greater level of confidence in their investments.
Despite the potential benefits of adopting Integrated Reporting, Ghanaian businesses face significant cost barriers to implementing the new framework. Many businesses in the country are small and lack the resources to develop the necessary reporting systems. However, the ACCA is committed to supporting Ghanaian businesses in adopting Integrated Reporting and has provided guidance on how to do so cost-effectively.
Integrated Reporting has become a critical tool for businesses seeking to attract investors, and Ghanaian businesses would benefit from its adoption. While cost barriers exist, the potential benefits of adopting the framework are significant, including improved transparency and accountability in financial reporting, greater investor confidence, and better preparation for changing market conditions. The ACCA’s commitment to supporting Ghanaian businesses in adopting Integrated Reporting is a positive step towards realizing these benefits.
