Rwandan corporate reporting and international requirements.
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Date
2009
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Abstract
Literature suggests that countries should adopt the International Financial Reporting
Standards and the worldwide recommended narrative reporting in annual reports. However,
in developing countries, a range of prerequisites have to be put in place to ensure
compliance therewith.
This study has two main aims: firstly, to identify the way Rwandan companies report and to
compare their reporting system with international requirements, and secondly to establish
how aware Rwandan companies are of narrative reporting.
This study uses a basic research and a mixed methods approach. A mixed method approach
is used when the researcher supplements qualitative information with a quantitative
approach to provide a more comprehensive analysis of the problem. A sample of 24
companies formed the subject of this study. Data were collected using a questionnaire
which was supplemented in some cases with interviews.
This study revealed that although Rwandan companies report annually, they do not all
comply with International Financial Reporting Standards. While Rwandan companies do
not totally ignore narrative reporting and are aware of its importance, some preparers lack
some knowledge towards the preparation and presentation of such reports. Some of the
reasons for this were the lack of a properly constituted accounting board, the lack of sound
regulation in the accounting profession and the absence of enough qualified accountants
Based on the current study’s findings, it is recommended that the accounting profession in
Rwanda should be strengthened. This can be achieved with the help of the government of
Rwanda and the international community. The current study also revealed the necessity for
Rwanda to adopt the International Financial Reporting Standards. To achieve this, an
incremental adoption approach is recommended which could lead the way to the full
adoption of the International Financial Reporting Standards.
Description
Thesis (M.Acc.)-University of KwaZulu-Natal, Westville, 2009.
Keywords
Financial statements--Standards--Rwanda., Corporation reports--Rwanda., Theses--Accounting.