Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 197

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.
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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


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.