IFRS adoption in Morocco: Appropriateness with regards to the economic structure in an African context

Abstract

Today, more than 144 countries apply IFRS standards in an effort to provide a clear and transparent understanding of the operations of companies and other institutions. Practices as we see them today, have heavily been impacted by historical movements and marking events. In the case of Morocco, the colonial period who introduced accounting practices in the country; heavily impacts the way accounting is undertaken today. Whether abroad or in Morocco; the appropriateness of IFRS applications is questioned as it is supposed to represent the very different realities of all of these 144 countries. Hence, discussions on the appropriateness of the accounting practices that aim at harmonizing the understanding of the accounting language arise. As a matter of fact, the question on the appropriateness of IFRS standards in the understanding of accounting in countries with different backgrounds, economies and structures appear important. As a matter of fact, to some countries, mock compliance is the rule as the appropriateness of the accounting standard is questionable. This article discusses mock compliance by providing an understanding of accounting practices in Morocco; throughout a historical perspective but also through analysing the future prospects in the country and its pan African ambitions. This discussion is specifically relevant to the current context and recent events that have proven Morocco’s ambition and will to establish itself as a strong African player and power.