Accra, April 25, GNA - The Inter-Bank exchange rate recorded an adverse change of 52 per cent in the cedi-dollar exchange rate between January, 1999 and January, 2000.
The percentage change for the same period between 1998 and 1999 was 2.97 per cent, Mr Francis Tweneboa, President of the Institute of Chartered Accountants, Ghana, (ICAG) said in Accra on Tuesday when he launched activities to mark the Institute's annual week celebrations.
Mr Tweneboa, who was commenting on the impact of the downward slide of the cedi on activities of members, blamed the situation on the trade liberalisation policy which, he said, makes the country import dependent.
He said that the volatility of the cedi adversely affects accountancy services in making both long- and short-term planning. "Corporate strategic and tactical planning becomes difficult to formulate as the future view is too clouded to permit meaningful projections by accountants as architects of the plan."
Mr Tweneboa said controlling of accounts also becomes difficult. This is because operating results, in the circumstances, invariably show wide divergences from targets while instability in the cost component may make corrective measures also ineffective.
The situation also affects costing, business valuation and industry health. In the case of costing, the President pointed out that it is always in a "state of flux" as costing factors continue to alter.
Most industries dependent on foreign debt capital are also saddled with exchange losses and are unable to achieve expansion targets, and poor performance arising from this creates difficulty in the payment of the accountant's service bills.
Mr Tweneboa, who is also the General Manager of the Ghana Stock Exchange (GSE), said another effect of the slide of the cedi is the lack of direct and portfolio investments.
"The former normally engages the services of the accountant and, therefore, his absence narrows the scope of the market for the accountant's services. "Indications are that portfolio investor participation on the stock exchange is petering owing to dwindling returns in the dollar term."
Cedi depreciates more than 50 per cent Accra, April 25, GNA - The Inter-Bank exchange rate recorded an adverse change of 52 per cent in the cedi-dollar exchange rate between January, 1999 and January, 2000.
The percentage change for the same period between 1998 and 1999 was 2.97 per cent, Mr Francis Tweneboa, President of the Institute of Chartered Accountants, Ghana, (ICAG) said in Accra on Tuesday when he launched activities to mark the Institute's annual week celebrations.
Mr Tweneboa, who was commenting on the impact of the downward slide of the cedi on activities of members, blamed the situation on the trade liberalisation policy which, he said, makes the country import dependent.
He said that the volatility of the cedi adversely affects accountancy services in making both long- and short-term planning. "Corporate strategic and tactical planning becomes difficult to formulate as the future view is too clouded to permit meaningful projections by accountants as architects of the plan."
Mr Tweneboa said controlling of accounts also becomes difficult. This is because operating results, in the circumstances, invariably show wide divergences from targets while instability in the cost component may make corrective measures also ineffective.
The situation also affects costing, business valuation and industry health. In the case of costing, the President pointed out that it is always in a "state of flux" as costing factors continue to alter.
Most industries dependent on foreign debt capital are also saddled with exchange losses and are unable to achieve expansion targets, and poor performance arising from this creates difficulty in the payment of the accountant's service bills.
Mr Tweneboa, who is also the General Manager of the Ghana Stock Exchange (GSE), said another effect of the slide of the cedi is the lack of direct and portfolio investments.
"The former normally engages the services of the accountant and, therefore, his absence narrows the scope of the market for the accountant's services. "Indications are that portfolio investor participation on the stock exchange is petering owing to dwindling returns in the dollar term."
