IFRS Adoption and Implementation Result Effectiveness: The case of ethio-telecom

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International Financial Reporting Standards have increasingly been essential because one hundred thirty-eight countries implemented throughout the Globe. The rapid growth of the Ethiopian financial market and economic development has led to the need for improving the current accounting system to complement the globalization trend of the world economy. This thesis aims to identify IFRS adoption and implementation result effectiveness by ethio-telecom. So, the study raised four research questions those are, what are the main challenges of IFRS at the time of adoption and implementation in ethio-telecom, what are the main benefits of IFRS at the time of adoption and implementation in ethio-telecom, how the stakeholders involved in the adoption and implementation of the International Financial Reporting Standard and are the financial statements are qualified after adoption and implementation of International Financial Reporting Standard. To answer this research questions, the research study used purposive sampling by selecting a focus group of IFRS adoption and implementation project team and Finance division staff using a questionnaire because these teams have the knowledge and expertise of applying the standard. In the findings IFRS was not implemented fully in ethio-telecom due to the existing challenges and inadequate stakeholders’ involvement in the process. Major challenges to ethio-telecom are, lack of availability of competent professions and professional institutions, estimation problem to use of fair value, need high cost, and insufficiency professional evaluators. The benefits of adopting IFRS are to ethio-telecom that avail quality information for decision making for better planning purposes, it improves the transparency level, and increases the level of quality in terms of financial reporting. Furthermore, the findings also suggest that by the involvement of stakeholders it support ethio-telecom availability of real-time financial statements, regulatory oversight and enforcement, better access to capital, understand of risk and return, enhance competitiveness, and facilitates mergers and acquisitions.



International Financial Reporting Standard