IFRS Compliant Financial Statement Pivotal to Participate in Capital Market, Says Authority Director-General

IFRS Compliant Financial Statement Pivotal to Participate in Capital Market, Says Authority Director-General

• Business
• March 29, 2023

Having the International Financial Reporting Standards (IFRS) compliant financial statement would be beneficial to participate in the capital market, according to the Ethiopian Capital Market Authority (ECMA).

IFRS bring transparency by enhancing the international comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions.

Accurate financial documentation is also necessary to measure important metrics, including debt-to-asset ratios, which investors use to evaluate how effectively companies pay down debt and generate revenue.

ECMA Director-General Brook Taye told ENA that the most important element IFRS compliant are not necessarily for anybody but for the company itself because it would let you know and understand the true value of your company.

Referance: March 24/2023 (ENA)