Financial reporting for M&A: local GAAP vs local IFRS. Evidence from Africa

Ing. Mvondo Engozo'o Jules Henri

Master's thesis

Abstract:

Attracting investors can be done by way of M&A. Companies merge for many reasons, for example to grow, to eliminate competition, or for economy of scale, etc. The potential investor must have access to the financial data of the issuing company of foreign nationality, and compare them with the international standard used in order to better understand results and take appropriate decisions. Some reporting standards are known, IFRS, but this is not always the case, the example of OHADA, which is left behind due to non-understandability of their reporting process, preventing investors to have interest in such regions. This can clearly be seen in term of foreign direct investment or attractiveness compared to other countries within the same continent using IFRS as the reporting accounting standard. The aim of this research is to investigate on the impact of local GAAP and local IFRS on financial reporting for the chosen M&A in Africa, identify advantages and disadvantages of both reporting systems. Based on investigations on business combinations undertaken by Atlas Mara, a multinational, we came up with advantages and disadvantages of both reporting systems and made a set of recommendations for companies planning to undertake Merger and acquisition in Africa.

Keywords

MERGERS AND ACQUISITIONS, FINANCIAL REPORTING, OHADA, IFRS.

Language used: English

Date on which the thesis was submitted / produced: 8. 1. 2018

Thesis defence

• Date of defence: 29. 1. 2018
• Supervisor: Ing. Oleksandra Lemeshko
• Reader: Ing. Bc. Jana Hvozdenská

Masaryk University

Faculty of Economics and Administration

Master programme / field:
Finance and Accounting / Finance (eng.)