|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||As of 1 January 2019, IFRS Standards are required for all listed companies and companies ‘making a public call for capital’.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||Required for all foreign companies whose securities trade in a public market starting 1 January 2019.|
|The IFRS for SMEs Standard is required or permitted||No.|
|The IFRS for SMEs Standard is under consideration||No.|
Organisation pour l’Harmonisation en Afrique du Droit des Affaires (OHADA) [Organisation for the Harmonisation of Business Law in Africa]
Union Economique et Monétaire Ouest Africaine (UEMOA) [West African Economic and Monetary Union]
Organisation for the Harmonisation of Business Law in Africa (OHADA)
In October 1993, 17 West and Central African nations signed a treaty forming a regional organization called Organisation pour l’Harmonisation en Afrique du Droit des Affaires (OHADA) -- the Organisation for the Harmonisation of Business Law in Africa. The 17 countries are Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Comoros, Côte d’Ivoire, Democratic Republic of Congo, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Mali, Niger, Republic of the Congo, Senegal, and Togo.
OHADA was established with the objective of fostering economic development in West and Central Africa by creating a better investment climate so as to attract investment and enhance growth. OHADA has adopted business laws and formed institutions to implement those laws.
OHADA has authority to adopt accounting standards. By treaty, the member states must abide by those standards.
On 26 January 2017, the Council of Ministers of OHADA adopted the OHADA Uniform Act on Accounting Law and Financial Reporting. It was published in the Official Gazette of the Organization on 15 February 2017. That Act adopted an OHADA accounting system called Système Comptable OHADA, or SYSCOHADA. SYSCOHADA is 1,246 pages long, in French. You can download it here (81mb).
For most companies in OHADA countries, the SYSCOHADA accounting system is an elaboration of the French Plan Comptable. It applies to small and medium-sized entities (SMEs) and excludes banking companies, financial market players, insurance companies and social security institutions, to which specific regulatory frameworks apply. However, for listed companies and companies seeking financing in a public capital market, the new OHADA system requires IFRS Standards starting 1 January 2019. IFRS standards are optional for other public interest entities.
West African Economic and Monetary Union (UEMOA)
Eight OHADA jurisdictions are also members of the Union économique et monétaire ouest-africaine (West African Economic and Monetary Union, or UEMOA). The eight UEMOA jurisdictions are Benin, Burkina Faso, Guinea Bissau, Côte d’Ivoire, Mali, Niger, Senegal and Togo. UEMOA was formed by treaty in January 1994 with the goal of establishing a common market and adopting joint policies particularly on human resources, territorial administration, agriculture, energy, industry, mines, transport, infrastructure and telecommunications. In pursuing its mission, UEMOA also has authority to adopt accounting standards. Under the treaty, the member states must abide by those standards.
On 20 December 1996, the UEMOA adopted regional accounting standards known as Le Système Comptable Ouest Africain (West African Accounting system, or SYSCOA), effective 1 January 1998. SYSCOA is based on the French Plan Comptable and was compliant with the OHADA accounting framework as at December 2013. It applies to all companies in the UEMOA jurisdictions unless financial market players, banking companies, insurance companies and social security institutions.
Bourse Régionale des Valeurs Mobilières (BRVM)
The eight UEMOA jurisdictions have organised a securities exchange: Bourse Régionale des Valeurs Mobilières (BRVM). The BRVM began operations in 1998. The listing rules of the BRVM do not specify a unique accounting standards framework by which the required financial statements must be prepared. Companies file based on SYSCOA or regulatory accounting standards (such as banking and insurance).
Yes. By having adopted IFRS Standards for all listed companies and companies seeking financing in a public capital market, OHADA and its member jurisdictions have publicly stated their commitment to global accounting standards. The announcement can be found on the OHADA website.
Yes. By having adopted IFRS Standards for all listed companies and companies seeking financing in a public capital market, OHADA and its member jurisdictions have publicly stated their commitment to IFRS Standards. The announcement can be found on the OHADA website.
Yes. IFRS Standards are required for all companies ‘making a public call for capital’, that is, seeking capital in a public market. OHADA has adopted the Uniform Act Relating to Commercial Companies and the Economic Interest Group. Article 81 of Title 4 of that Act states that a company is automatically deemed to be making a public call for capital if its ‘shares are distributed beyond a radius of one hundred (100) persons’. Therefore, companies with more than 100 shareholders are required to use IFRS Standards, even if their securities do not trade in a public market.