Journal of Accounting and Taxation
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Article Number - F36EF5564413


Vol.9(5), pp. 56-67 , May 2017
https://doi.org/10.5897/JAT2016.0213
ISSN: 2141-6664


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Full Length Research Paper

Corporate Financial Reporting Legal and Regulatory Frameworks in Ethiopia



Teferi Deyuu Alemi*
  • Teferi Deyuu Alemi*
  • Department of Commerce, Punjabi University, Patiala, India.
  • Google Scholar
J. S. Pasricha
  • J. S. Pasricha
  • Department of Commerce, Punjabi University, Patiala, India.
  • Google Scholar







 Received: 13 February 2016  Accepted: 23 March 2016  Published: 31 May 2017

Copyright © 2017 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0


This paper analyzes the corporate financial reporting legal and regulatory environment in Ethiopia. The aim of the paper is reviewing and examining the legal and regulatory requirements for corporate financial reporting, and analyzing the extent of the implementation of policy recommendations made by ROSC Ethiopia team in 2007.  Qualitative research was employed through analysis of legal and non-legal documents (such as Commercial codes, various proclamations, regulations and directives, manuals academic literatures, newspapers, etc.). The empirical results of the study revealed that there were inadequate laws that stipulate the detail minimum requirements and formats for presentation and disclosures of both financial and non-financial information in financial statements of Corporate Companies in Ethiopia. Regarding the extent of the implementation of the recommendations made by Reports on Observance of Standards and Codes (ROSC) Ethiopia (2007), the examination of legal and regulations revealed that the Federal Democratic Republic of Ethiopia has enacted financial reporting law, established the regulatory body, adopted IFRS instead of setting its own accounting standards and mandated International Standards on Auditing (ISA) for auditors.

Key words: Ethiopia, accounting standards, financial reporting, legal and regulatory environment.

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APA Alemi, T. D., & Pasricha, J. S. (2017). Corporate Financial Reporting Legal and Regulatory Frameworks in Ethiopia. Journal of Accounting and Taxation, 9(5), 56-67.
Chicago Teferi Deyuu Alemi and J. S. Pasricha. "Corporate Financial Reporting Legal and Regulatory Frameworks in Ethiopia." Journal of Accounting and Taxation 9, no. 5 (2017): 56-67.
MLA Teferi Deyuu Alemi and J. S. Pasricha. "Corporate Financial Reporting Legal and Regulatory Frameworks in Ethiopia." Journal of Accounting and Taxation 9.5 (2017): 56-67.
   
DOI https://doi.org/10.5897/JAT2016.0213
URL http://www.academicjournals.org/journal/JAT/article-abstract/F36EF5564413

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