A modernised accounting framework for Africa
The revised SYSCOHADA — the OHADA Accounting System in its 2017 revised version, effective 1 January 2018 — is the most significant accounting reform in the OHADA area since the original system was adopted in 2000. Applicable to companies in the 17 OHADA member states, this modernised framework aligns African accounting with international standards (IFRS) while preserving local specificities.
The main changes from the old system
A wider scope and new entities
The revised SYSCOHADA introduces, for the first time, specific provisions for not-for-profit entities (associations, NGOs, foundations), the liberal professions, and a simplified system for very small entities (VSEs) whose annual turnover is below 30 million FCFA.
New financial statements and additional disclosures
The standard system now comprises: the Balance Sheet, the Income Statement, the Cash Flow Statement (CFS), the Statement of Changes in Equity, and enriched Notes to the accounts. The introduction of the Cash Flow Statement is one of the most significant changes: it gives a direct view of the cash a company generates.
New measurement rules
The revised SYSCOHADA introduces the option of measuring certain assets at fair value, notably financial instruments and investment property. This option, drawn from IFRS, allows a better representation of the real economic value of assets.
Compliance requirements
The transition to the revised SYSCOHADA involves several work streams: reviewing the chart of accounts, training accounting and finance teams on the new measurement rules, and revising closing procedures to incorporate the production of the Cash Flow Statement and the Statement of Changes in Equity.
Specific implications for lenders
For banks, microfinance institutions and investors assessing files in the OHADA zone, the revised SYSCOHADA changes the analytical grid. Reading the Cash Flow Statement must be built into the due diligence process: a positive net result combined with negative operating cash flow is a strong warning sign that the old system did not allow you to detect as clearly. Mboa Make systematically incorporates the revised SYSCOHADA into its financial analyses and financeability diagnoses.
