What is the contribution of trade in Ethiopia?
Like in most of the Sub-Sahara African and other developing countries, exports can play a significant role in the growth and performance of the Ethiopian economy. It can be seen that on average exports contributed about 9.9 percent to GDP during the past three decades.
What are the challenges of implementing IFRS in Ethiopia?
Finally, the result of the study revealed that weak corporate governance, poor quality of education and training, lack of supports from accountancy professional bodies, weak enforcements of regulatory body, inadequacy of transition period, improper planning, non- availability of transparent market information, high …
Does Ethiopia use IFRS?
IFRS Adoption and Implementation At National Level According to Proclamation No. 847/2014 Article 5(1), Ethiopia has adopted International financial Reporting Standards (both full-IFRS and IFRS for SME) for the purpose of preparing financial statements in December, 2014.
What are types of trade in Ethiopia?
Ethiopia’s major exports include coffee, gold, leather products, beeswax, canned vegetables, tea, sugar, cotton, and oilseeds. Purchasing approximately 22 percent of Ethiopia’s exports in 1997, Germany is Ethiopia’s largest trading partner.
What is the history of trade in Ethiopia?
Ethiopian trade and business were transformed by the founding, around 1887, by Emperor Menilek, of a new Ethiopian capital: Addis Ababa. This settlement, which was situated almost in the centre of the Ethiopian realm, became the site, in the late nineteenth and early twentieth centuries, of many important innovations.
What is the most export item in Ethiopia?
coffee
Ethiopia main exports are gold (21 percent of total exports) and coffee (19 percent). Others include: live animals, oilseeds, flowers and khat. Ethiopia main export partner is Switzerland (21 percent of total exports) mainly for export of gold.
When did Ethiopia adopt IFRS?
December, 2014
The study found that some companies in Ethiopia have started using IFRS voluntarily for the preparation of their financial statements since 2002/03 without making necessary preparedness but nationally; IFRS is adopted officially in December, 2014 through enactment of Proclamation.
What are the benefits and challenges of adopting IFRS to your country?
Gordon (2008) listed the benefits from adaptation of IFRS over the world to include: better financial information for shareholders and regulators, enhanced comparability, improved transparency of results, increased ability to secure cross-border listing, better management of global operations and decreased cost of …
Does Ethiopia use GAAP?
There are no accounting and auditing standards set in Ethiopia. For accounting standards, there is no law or regulation that has set or requires accounting standards in preparation of financial statements. Some laws require GAAP to be applied.
What are the merits of adopting IFRS for Ethiopia over the US GAAP?
1. Advantages of IFRS compared to GAAP reporting standards
- 1.1 Focus on investors.
- 1.2 Loss recognition timeliness.
- 1.3 Comparability.
- 1.4 Standardization of accounting and financial reporting.
- 1.5 Improved consistency and transparency of financial reporting.
- 1.6 Better access to foreign capital markets and investments.
What is the main trade in Ethiopia?
Ethiopia main exports are gold (21 percent of total exports) and coffee (19 percent). Others include: live animals, oilseeds, flowers and khat. Ethiopia main export partner is Switzerland (21 percent of total exports) mainly for export of gold.
What are the major challenges Ethiopia exporters are facing?
351), as stated by Bruk, identified that market access, low level of private investment, high transaction costs, infrastructural deficiencies, delays in service delivery, limited market knowledge, and shortage of skilled work force as the main constraints challenging Ethiopia’s export sector.
Why is IFRS important?
Importance of IFRS It encourages transparency and accountability of financial statements prepared by companies, small firms, and government agencies. As a result, it minimizes the margin of error and manipulation of any holdings and irregularities of funds, transactions, and balances.
What is the current accounting standards or principles applicable in Ethiopia as a base for financial statement preparation and presentation?
There are no accounting and auditing standards set in Ethiopia. For accounting standards, there is no law or regulation that has set or requires accounting standards in preparation of financial statements. Some laws require GAAP to be applied. However, in all cases, GAAP is not defined.
Who is Ethiopia’s biggest trading partner?
Top 15
- China: US$288.2 million (10.1% of total Ethiopian exports)
- Somalia: $243.6 million (8.5%)
- United States: $227.3 million (7.9%)
- Saudi Arabia: $206.2 million (7.2%)
- Germany: $195.1 million (6.8%)
- Netherlands: $188.9 million (6.6%)
- United Arab Emirates: $127.6 million (4.5%)
- Switzerland: $111.6 million (3.9%)
What is Ethiopia biggest export?
In 2019, Ethiopia’s major goods exports included coffee (28.7%), cut flowers (14.1%), oil seeds (11.5%), chat (10.9%), pulses (7.9%), gold (6.6%), leather and leather products (2.4%). Ethiopia’s total export earnings by value increased by 12% from the previous year.
What is the economic reform process in Ethiopia all about?
These efforts have been accelerated over the past couple of years through an unprecedented economic reforms process that seeks to build on the country’s tremendous growth in the number, diversity and market share of private businesses in the Ethiopian economy.
What is the economic development of Ethiopia?
The Ethiopian Government has developed comprehensive agricultural and economic development plans that have contributed to the country’s substantial growth in agriculture, industry and services. There has also been tremendous growth in the number, diversity and market share of private businesses in the Ethiopian economy.
What does the US government do to help Ethiopia?
Economic Growth and Trade. USAID works with Ethiopia to commercialize agriculture and increase private sector investment and growth. The Ethiopian Government has developed comprehensive agricultural and economic development plans that have contributed to the country’s substantial growth in agriculture, industry and services.
Is it easy to do business in Ethiopia?
In the past five years, Ethiopia has experienced substantial growth in all three major economic sectors (agriculture, industry and services). However, investments by the private sector lag far behind those of government and the country continues to rank lowest in the region for the World Bank’s Ease of Doing Business Index.