Browsing by Author "Fantahun, Fikru"

Now showing 1 - 2 of 2
  • No Thumbnail Available
    Item
    The Adoption of International Financial Reporting Standards (IFRS) in Ethiopia: Benefits and Key Challenges
    (Addis Ababa University, 2012-05) Fantahun, Fikru; Laxmikantham, P. (PhD)
    This study aims to examine the adoption of International Financial Reporting Standards (IFRS) in Ethiopia. The study focuses on examining the benefits and challenges of IFRS including the factors that could influence its adoption. To answer research questions and test the hypotheses the study adopted the mixed research approach. The questionnaire data were analyzed using descriptive statistics, correlations, and multiple linear regression analysis and data from interview and document reviews were interpreted qualitatively. The results show that IFRS adoption in Ethiopia will result in a number of important benefits to a wide range of stakeholders. High cost of adopting, the complex nature, lack of proper instructions from regulatory bodies for implementing IFRS, as well as IFRS’s emphasis on fair value accounting, are listed among the most important challenges of IFRS adoption. The study also find that with the exception of government policy the other four variables which are professional bodies, capital market, educational level and company size significantly influence the adoption of IFRS in Ethiopia. Finally, the thesis displayed practical implications for the government of Ethiopia and regulatory bodies in setting a firm deadline for the IFRS adoption and in following the proper application of all the adopted standards. The findings also suggest that a rigorous IFRS capacity building program should be embarked by the government, all regulatory bodies, firms and training institutions in order to provide the needed manpower for IFRS implementation. Keywords: Adoption, International Financial Reporting Standards, Ethiopia
  • No Thumbnail Available
    Item
    The Adoption of International Financial Reporting Standards (IFRS) in Ethiopia: Benefits and Key Challenges
    (A.A.U, 2012-05) Fantahun, Fikru; Laxmikantham, P (Dr)
    This study aims to examine the adoption of international Financial reportitt's standards ([FRS) in Ethiopia. the study focuses on examining the benefits and challenges of [FRS including the factors that could influence its adoption. to answer research questions and test the hypotheses the study adopted the mixed research approach. the questionnaire data were analyzed using descriptive statistics, correlations, and multiple linear regression analysis and data from interview and document reviews were interpreted qualitatively. The results show that [FRS adoption in Ethiopia will result in a number of important benefits to a wide range of stakeholders. high cost of adopting, the complex nature, lack of proper instructions from regula ton) bodies for implementing [FRS, as well as [FRS's emphasis on fair value accounting, are listed among the most important challenges of [FRS adoption. the study also find that with the exception of government policy the other four variables which are professional bodies, capital market, educational level and company size significantly influence the adoption of [FRS in Ethiopia. Finally, the thesis displayed practical implications for the government of Ethiopia and regulaton) bodies in setting a firm deadline for the [FRS adoption and in following the proper application of all the adopted standards. The findings also suggest that a rigorous [FRS capacili) building program should be embarked by the government, all regulaton) bodies, firms and tmining institutions in order to provide the needed manpower for [FRS implementation.