financial statements. Most non-complying countries are still running away from
implementing IFRS for the simple fact
that they want to avoid the cost of changing to the IFRS. For instance, the IFRS
1 states that if a company is preparing
its first statement of financial position, it
must re-classify items that are recognized
under their previous accounting standards as a type of asset, liability or equity
which are different in classification under IFRS; and to apply IFRS by measuring all assets and liabilities it recognized.
This involves the restating of the financial
statements prepared within the same period under the firm’s previous accounting practice, in order to comply with the
IAS/IFRS in it first reporting. It is very
important to present a fair financial statement, which demonstrates the financial
performance and cash flows of the firm in
compliance with IFRS. To achieve this,
the IAS 1 clearly states that the firm must
disclose that IFRS standards were applied
and complied with.
T
he use of inappropriate accounting
treatment should not be rectified either by disclosure or notes. Thereby, to be
fair in presenting the financial position,
the firm must select and apply an appropriate accounting policy and present information in a way that they are relevant,
reliable, comparable, and understandable,
and disclose any additional information
where it is required.
This is the path Sierra Leone has taken in
meeting global investment opportunities.
One of the successes that has driven the
country’s economy to a new height is
the raising of the reporting standards to
meet both local and international investors’ benchmarks by instituting applicable
standards that are relevant to