INNOVATIONS IN THE NEW

SYSCOHADA

By Enowmbeng Lena
Overview of the New SYSCOHADA
With the changing global landscape and increased emphasis on
convergence with international standards like IFRS, a revision of
SYSCOHADA became a necessity.

The new SYSCOHADA (System of Organization and Harmonization of

Accounting in Africa and “Système Comptable Ouest Africain Harmonisé
des Entreprises” in French), is a revised accounting system that is part of
the OHADA framework. It represents a significant update to the previous
accounting standards within the OHADA region and aims to align with
international best practices, particularly the International Financial
Reporting Standards (IFRS).
Major Innovations in the New
SYSCOHADA
• Fundamental Accounting Principles: The new SYSCOHADA brings about changes in
fundamental accounting principles to align with international standards and best practices.
This ensures consistency and comparability in financial reporting across member states.

• Operation and Content of Accounts: There are updates in the operation and content of
accounts to reflect changes in business practices and economic environments. This includes
adjustments to account classifications, recognition criteria, and measurement principles.

• Enforceability of Shareholders’ Agreements: The recognition of shareholders’ agreements

(found in article 2-1 of the uniform act on commercial companies and economic interest
groups) under the Revised Act enhances legal certainty and stability in investment
structuring by providing a clear framework for governing shareholder relationships.
• Preparation of Financial Statements: The new SYSCOHADA provides guidelines for the
preparation of financial statements that comply with International Accounting Standards
(IAS). This enhances transparency, accuracy, and reliability in financial reporting.

• Account Nomenclatures: Changes in account nomenclatures aim to standardize terminology

used in financial statements, making it easier for stakeholders to interpret and analyze
financial information.

• New Types of Securities: The Revised Act permits preferred shares and hybrid securities like
convertible bonds, facilitating private equity investments and diversifying financing options
for companies operating within the OHADA region.

• New Corporate Form – Société Par Actions Simplifiée (SAS): The introduction of SAS as
a new corporate form provides greater flexibility in corporate governance structures, allowing
shareholders to customize governance arrangements according to their specific needs.
THANK YOU!!!