WHEREAS, it has become necessary to establish a sound, transparent, and understandable financial reporting system applicable to entities in both private and public sectors;  

WHEREAS, having a uniform financial reporting law enhances transparency and accountability by centralizing the hitherto decentralized financial reporting structures of Ethiopia;  

WHEREAS, to support various building blocks of the economy and to reduce the risk of financial crisis, corporate failure, and associated negative economic impacts; it is necessary to ensure that the provision of financial information meets internationally recognized reporting standards;  

WHEREAS, it is necessary to establish a body that undertakes regulatory responsibilities in financial reporting;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: