Business Administration in Finance

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Browsing Business Administration in Finance by Subject "Adoption"

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    Challenges of Practical Implementation of IFRS in Ethiopia, Evidence from Banking Sector
    (Addis Ababa University, 2018-12) Aytenew, Agumas; Sewale, Abate (PhD)
    Since the turn of the century, there is an unprecedented appreciation of the usefulness of the International Financial Reporting Standards (IFRS) across the globe. As a single set of globally converged, high quality accounting standards, IFRS are designed to serve as a common global language for business affairs so that company accounts are understandable and comparable across the globe. As a result, by recognizing the relative importance of IFRS, over 150 countries required or permitted IFRS as their corporate financial reporting standard. Despite this widespread acceptance of IFRS, there are serious institutional, enforcement and technical challenges that countries need to overcome in order to benefit fully from the introduction of IFRS in their jurisdictions. Ethiopia is one of those countries that face serious challenges to implement IFRS. Therefore, this research is intended to investigate the practical challenges of IFRS adoption in Ethiopia, particularly in private commercial banks. To achieve this objective, both primary and secondary data were collected from IFRS implementation team members of 12 private banks who were selected purposively based on their role and involvement in the implementation process. Primary data were collected through questionnaire and interview whereas secondary based were collected through documentary evidence and analyzed by using different descriptive statistical tools. Finally, the result of the study revealed that weak corporate governance, poor quality of education and training, lack of supports from accountancy professional bodies, weak enforcements of regulatory body, inadequacy of transition period, improper planning, nonavailability of transparent market information, high cost of implementation and weak management support are the major challenges of adopting IFRS by private banks in Ethiopia
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    Opportunities and Challenges of International Financial Reporting Standards (IFRS) Implementation in the Case of Commercial Banks in Ethiopia
    (Addis Ababa University, 2019-05) Jote, Kenate; Sewale, Abate (PhD)
    The aim of the study is to identify the opportunities and challenges of International Financial Reporting Standards (IFRS) Implementation in the case of Commercial Banks in Ethiopia. The study focuses on assessing the opportunities and challenges of IFRS including the factors that could influence its adoption and post implementation challenges. To achieve these objectives, both primary and secondary data were collected from Accountants, Auditors and IFRS implementation who are working in the commercial Banks in Ethiopia who were selected purposively based on their role and involvement in the implementation Process. Primary data were collected through questionnaire and interview whereas secondary based were collected through documentary evidence and analyzed by using descriptive analysis. The findings suggest that IFRS has cumbersome requirements, difficult to understand apparent technical complexities in IFRS, lack of implementation guidance, difficulty in determining fair value of assets and liabilities, lack of personnel with necessary knowledge and expertise of IFRS, scarcity of experts for consulting, limited access to IFRS education and training program, limited experiences in applying IFRS, lack of top management’s commitment and support, lack of trained Auditors to audit under IFRS environment, lack of cooperation among departments , resistance to change, lack of IFRS compatible software packages, difficulty of integrating IFRS with the current accounting system, and IFRS, limited time for preparation and transition before full convergence , high cost of IFRS consulting and auditing, insufficient Availability of Internal data for IFRS conversion are the clearly outstanding challenges encountered by firms upon the mandatory adoption and compliance with IFRS. The finding of open ended questionnaires also suggest that there are weak post IFRS implementation follow up, IFRS is not incorporated in day to day activities since the last reporting date, IFRS-9 not yet implemented by Commercial Banks in Ethiopia except CBE, NBE and Ministry of Revenue were not yet revised its laws in line with the requirement of IFRS