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The Development of Accounting in the Franc Zone Countries in Africa

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  • Elad, Charles

Abstract

This paper develops a taxonomy of the different accounting systems that have evolved in Africa from the colonial era, through the early years of independence, to modern times. A preliminary test of the classification scheme for the current era of International Financial Reporting Standards (IFRS) was carried out using data from a PricewaterhouseCoopers (2011) survey. The results confirm Nobes' (2008) hypotheses on patterns of national reaction to IFRS. The results also show that a distinctive approach to financial accounting, which is alien to Anglo-American practitioners, and modeled on long-established French traditions, is still entrenched in Africa's franc zone countries in the 21st century, despite sustained pressure from the World Bank and the International Monetary Fund for large entities to adopt IFRS. These findings provide some evidence against Alexander and Archer's (2000) claim that the contemporary notion of “Anglo-Saxon accounting” is a myth.

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  • Elad, Charles, 2015. "The Development of Accounting in the Franc Zone Countries in Africa," The International Journal of Accounting, Elsevier, vol. 50(1), pages 75-100.
    • Handle: RePEc:eee:accoun:v:50:y:2015:i:1:p:75-100
    DOI: 10.1016/j.intacc.2014.12.006
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    12. Charles Elad & Martha Tumnde, 2009. "Bookkeeping and the probative value of accounting records: Savary's legacy lingers on in the OHADA Treaty states," International Journal of Critical Accounting, Inderscience Enterprises Ltd, vol. 1(1/2), pages 82-109.
    13. Christopher Nobes, 2011. "IFRS Practices and the Persistence of Accounting System Classification," Abacus, Accounting Foundation, University of Sydney, vol. 47(3), pages 267-283, September.
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    18. d'Arcy, Anne, 2001. "Accounting classification and the international harmonisation debate -- an empirical investigation," Accounting, Organizations and Society, Elsevier, vol. 26(4-5), pages 327-349.
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    Cited by:

    1. Gatluak Gach Chuol Thony & Anthony Duku Peter, 2023. "The Impact of Adoption of International Financial Reporting Standard on Quality of Accounting Information in South Sudan: A Case Study of Kenya Commercial Bank and Cooperative Bank," International Journal of Science and Business, IJSAB International, vol. 19(1), pages 28-48.
    2. Elad, Charles & Shah, Neeta & Agyeman, Charles, 2023. "Accounting classification in the era of International Financial Reporting Standards: The case of Africa," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    3. Lassou, Philippe J.C. & Hopper, Trevor & Tsamenyi, Mathew & Murinde, Victor, 2019. "Varieties of neo-colonialism: Government accounting reforms in Anglophone and Francophone Africa – Benin and Ghana compared," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 65(C).
    4. Christopher W. Nobes & Stephen A. Zeff, 2016. "Have Canada, Japan and Switzerland Adopted IFRS?," Australian Accounting Review, CPA Australia, vol. 26(3), pages 284-290, September.
    5. Seny Kan, Konan A. & Agbodjo, Serge & Gandja, Serge V., 2021. "Accounting polycentricity in Africa: Framing an ‘accounting and development’ research agenda," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 78(C).
    6. Isabel Costa Lourenço & Raquel Sarquis & Manuel Castelo Branco & Nuno Magro, 2018. "International Differences in Accounting Practices Under IFRS and the Influence of the US," Australian Accounting Review, CPA Australia, vol. 28(4), pages 468-481, December.
    7. Nobes, Christopher, 2018. "Lessons from misclassification in international accounting," The British Accounting Review, Elsevier, vol. 50(3), pages 239-254.

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    More about this item

    Keywords

    Accounting classifications; IFRS practices; CFA franc zone; OHADA accounting system; Plan Comptable Général;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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