AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Yes, if your Ghana company reports in cedis and holds naira cash, naira receivables or naira payables, those are monetary items and IAS 21 requires them to be retranslated at the closing rate at year end, with the exchange difference recognised in profit or loss. How the Ghana Revenue Authority treats that gain or loss for tax is a separate question to confirm with GRA or a tax adviser before you file.
The short rule: monetary items move, non-monetary items stay
Most Ghanaian companies prepare accounts in cedis. The Institute of Chartered Accountants, Ghana (ICAG) requires public interest entities to use full IFRS and says all other SMEs should apply IFRS for SMEs, which has applied to financial periods ending on or after 31 December 2015. Either way, the logic for foreign currency balances is the same in spirit, and the full standard, IAS 21, sets it out precisely.
IAS 21 defines monetary items as units of currency held, and assets and liabilities to be received or paid in a fixed or determinable number of units of currency. For a Ghana company dealing with Nigeria, that usually means:
- Naira held in a Nigerian bank or a naira wallet.
- Invoices issued to Nigerian clients in naira and not yet paid (receivables).
- Invoices from Nigerian suppliers in naira not yet paid (payables).
- Naira loans to or from a related company in Nigeria.
Each of these is first recorded at the spot rate on the transaction date (IAS 21 allows an average rate for a week or month if rates do not fluctuate significantly). At the end of each reporting period, IAS 21 paragraph 23(a) requires monetary items to be translated at the closing rate, which is the spot rate at the reporting date. Paragraph 28 says the resulting exchange differences go to profit or loss.
Non-monetary items, such as equipment bought in Lagos or a prepaid rent you will not get back in cash, stay at the historical rate if carried at cost. You do not revalue them for exchange movements.
A worked example in cedis
The rates below are invented for illustration. Never use them as a real cedi-naira rate.
| Step | Naira amount | Rate (example) | Cedi amount |
|---|---|---|---|
| Client pays into your naira account in September | ₦5,000,000 | GH₵1 = ₦100 | GH₵50,000 |
| Balance still held at 31 December | ₦5,000,000 | GH₵1 = ₦125 (closing) | GH₵40,000 |
| Exchange difference to profit or loss | Loss of GH₵10,000 |
The naira did not leave the account, but it is worth fewer cedis at year end, so the books show a loss of GH₵10,000 (50,000 minus 40,000). If the naira had strengthened to GH₵1 = ₦80, the same balance would be worth GH₵62,500 and you would book a gain of GH₵12,500.
Do this for each naira bank balance and each open naira invoice. A receivable that is settled during the year is translated at the rate on the settlement date instead, and the difference between the booked amount and the cash received is a realised gain or loss.
Which closing rate to use
IAS 21 says the closing rate is the spot rate for immediate delivery at the reporting date. In practice your auditor will want a rate you can evidence, from a published source, applied consistently every year. Write down which source you used and keep a screenshot or printout dated 31 December (or your year-end date). If your bank or wallet shows a buying and a selling rate, agree with your auditor which one reflects what you could realise.
The tax side: ask before you deduct
Accounting and tax can treat exchange differences differently. Some tax systems tax or allow exchange gains and losses only when realised; others follow the accounts. We could not confirm on a Ghana Revenue Authority page how GRA treats an unrealised exchange loss on naira balances, so do not assume the GH₵10,000 in the example reduces your taxable profit. Confirm with GRA or a chartered tax adviser, and see our note on whether an FX loss is tax-deductible for a Ghana company.
Whatever the answer, keep the workings. PwC's summary of Ghana tax administration (reviewed March 2026) says taxable persons must keep records of receipts, payments, revenue, expenditure, assets and liabilities for at least six years under the Revenue Administration Act, 2016 (Act 915).
Year-end checklist
- List every naira bank balance and wallet at the reporting date, with statements.
- List open naira receivables and payables, invoice by invoice.
- Record the closing rate and its source.
- Retranslate each item and post the difference to an exchange gain or loss account.
- Keep realised and unrealised differences in separate accounts so your tax adviser can treat them correctly.
- File the workings with your year-end pack.
Our guide to cedi and naira bookkeeping covers the day-to-day entries that make this step quick.
Where Pryme fits
A Pryme Business Account holds NGN, USD, GBP and EUR with local details for each, and money stays in the currency it arrived in until you choose to swap. Statements show each currency separately, which is what you need for the balance list above. The Finance agent can prepare a draft list of naira balances and open invoices for your accountant; a person approves anything above a set ceiling and actions are recorded.
Questions people ask
Do I revalue naira cash at year end in Ghana?
Yes, if your accounts are in cedis. Under IAS 21 naira cash is a monetary item and is retranslated at the closing rate, with the difference in profit or loss.
Do I revalue equipment I bought in Nigeria in naira?
No. Equipment carried at cost is non-monetary and stays at the rate on the purchase date.
Is an unrealised FX loss tax-deductible in Ghana?
We could not confirm GRA's treatment on an official page. Ask GRA or a chartered tax adviser before claiming it.
Which rate should I use at 31 December?
The spot rate at the reporting date from a source you can evidence and use consistently. Agree the source with your auditor.
Sources
- IAS 21 The Effects of Changes in Foreign Exchange Rates · accessed Oct 2026
- ICAG: Adoption of IFRS for SMEs · accessed Oct 2026
- PwC Worldwide Tax Summaries: Ghana corporate tax administration (reviewed 11 Mar 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.