The Influence of Regulatory Framework and Environmental Factors on Accounting Practices by Companies in Ghana

This paper explores the influence of regulatory frameworks and environmental factors on the accounting practices of companies in Ghana. It emphasizes the critical role of a robust regulatory environment, maintained by bodies such as the Institute of Chartered Accountants, Ghana (ICAG), and the Securities and Exchange Commission (SEC), in ensuring transparency and consistency in financial reporting. The adoption of International Financial Reporting Standards (IFRS) has been pivotal in aligning Ghanaian accounting practices with global standards, although challenges remain in terms of implementation and compliance. Additionally, environmental factors such as economic conditions, technological advancements, sociocultural influences, and political stability significantly impact accounting practices. Economic stability encourages rigorous accounting standards, while technological advancements enhance the accuracy and efficiency of financial reporting. Sociocultural factors, including the education and professional development of accountants, and ethical standards, shape the quality of accounting practices. Political stability and effective legal systems are essential for enforcing accounting standards. This study provides valuable insights for regulators, policymakers, and practitioners, highlighting the need for continuous improvement in the regulatory framework and addressing environmental challenges to enhance the quality and reliability of financial reporting in Ghana.