ICAG issues policy imperatives on new bond arrangements
The Institute of Chartered Accountants Ghana (ICAG) has issued a stern warning to the Ghanaian government over the treatment of new bonds under the Debt Exchange Programme, insisting that adherence to International Financial Reporting Standards (IFRS) is vital to ensure transparency and consistency in the country’s financial reporting. The Institute’s President, Sena Dake, revealed that the ICAG has produced four discussion papers in response to the new bond arrangements, outlining policy imperatives that require the government’s attention.
In a statement, President Dake emphasized that “how to treat the new bonds, how to treat the losses are things that are very fundamental in our international financial standards”. She also stated that the ICAG has a responsibility to ensure that all accountants, auditors and finance professionals who are mandated to work with the new bond or debt arrangement have clear guidance on how to properly account for these instruments.
It is clear that the ICAG is keenly aware of the potential risks associated with the new debt arrangement and wants to ensure that the government treats these bonds in a manner that is consistent with best practices in international financial reporting. In a rapidly evolving economic environment, where the global economy has been significantly impacted by the COVID-19 pandemic, transparency in financial reporting is more important than ever.
In addition, the ICAG President expressed optimism regarding the government’s engagement with external creditors over debt forgiveness. She believes that Ghana’s reputation as a peaceful country, despite its economic challenges, will bolster investor confidence in the country. However, she cautioned that the government and the general public must remain committed to cutting down on expenditures and reducing waste to complement economic recovery efforts.
President Dake’s remarks on waste reduction are in line with recent statements from the government, which has been seeking to rein in spending amid rising debt levels. Ghana’s debt-to-GDP ratio has risen significantly over the past year, driven largely by the government’s efforts to support the economy during the COVID-19 pandemic.
Despite these challenges, the ICAG celebrated its 60th anniversary with a health walk and fun games, which included activities like a sack race, penalty shootouts, lime on spoon, and others. It is a testament to the resilience of the organization and its commitment to the well-being of its members. As Ghana continues to navigate its way through these uncertain times, the ICAG’s leadership and guidance will undoubtedly be critical in ensuring that the country’s financial reporting remains transparent and consistent.
