Addis Ababa,– The Accounting and Auditing Board of Ethiopia (AABE) assembled a crucial discussion with audit firms November 26, 2024 at the Ministry of Finance, focusing on IFRS S1 and S2—standards for sustainability-related opportunity and risk disclosures. This event aimed to address the growing importance of sustainability in financial reporting and the implications of these new standards for Ethiopian businesses. AABE’s A/Director General Fekadu Agonafer opened the session by highlighting the need for transparency and consistency in sustainability disclosures, which are essential for fostering investor confidence and supporting economic growth.
This event aimed to address the growing importance of sustainability in financial reporting and the implications of these new standards for Ethiopian businesses. AABE’s A/Director General Fekadu Agonafer opened the session byhighlighting the need for transparency and consistency in sustainability disclosures, which are essential for fostering investor confidence and supporting economic growth.
Mr. Dereje Gelana the technical consultant of AABE in his presentation highlighted emerging trends across Africa regarding the implementation of sustainability-related opportunity disclosure standards. He noted that many African countries are increasingly adopting these standards voluntarily and most of them are working to implement in this near future till 2027 compulsorily to enhance corporate transparency and accountability. By aligning with global sustainability initiatives, businesses are positioned to attract foreign investment and improve stakeholder trust.
Participants engaged in lively discussions about the challenges and opportunities associated with implementing these standards. Audit firms shared insights on best practices and strategies for effective compliance, emphasizing the role of auditors in guiding businesses through the transition.AABE reaffirmed its commitment to providing technical support to facilitate the adoption of IFRS S1 and S2. The collaboration between AABE and audit firms is vital in ensuring that Ethiopian stakeholders are well-prepared to embrace sustainability reporting, ultimately contributing to a more resilient and responsible economic framework in the country.
