Compliance with International Financial Reporting Standard 7 (IFRS 7): A Study of Listed Banks in Ghana

Abstract

The aim of this study is to identify the extent to which listed banks in Ghana comply with International Financial Reporting Standards, with particular reference to financial instruments IFRS 7. The level of mandatory compliance with IFRS 7 was measured using a mandatory disclosure index (MDI) from a self-constructed compliance checklist. The sample consisted of six listed banks and covers the period 2008 and 2009.The overall results show a high degree of compliance with IFRS 7, though not absolute.  The study recommends that though the enforcement mechanism seems to be working well in the short-run resulting in high compliance, effort should be made to sustain it in the long run.

Keywords: IFRS, Compliance, Listed Banks, mandatory disclosure index