Prospects And Challenges Of IFRS Adoption Project In Nib International Bank
No Thumbnail Available
Date
2018-06-24
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The main objective of this study was to assess the IFRS adoption project in Nib International Bank S.C. The specific objectives were to examine the present status of IFRS adoption project, to explore the prospects and challenges of IFRS adoption project, and to assess the readiness process of IFRS project in Nib International Bank. To meet the research objectives, both primary and secondary sources of data were used in the study. The study used two separate questionnaires and one key informant interview as tools to collect the primary data while documentary reviews were used to gather the secondary data required for the study. The total population of the study constituted 3 project steering committee members, 7 project team members and 280 operational staffs. From the 280 operational staff, with the use of Yamane’s simplified sample formula, a total of 165 respondents were selected as sample population of the study. In general, the total population of the study aggregated to 175 which were the sum of 165 sampled operational staff, 7 project staff and 3 project steering committee members. Data collected from the above sources were analyzed using both quantitative and qualitative data analysis tools. For the most part, qualitative data analysis techniques such as in-depth discussions and expositions were used. Meanwhile, frequencies and percentages were used for analyzing the quantitative data. The major findings of the study results from both primary and secondary data sources demonstrated that the project is in implementation stage and that it is still in progress. In relation to the prospect of the project, it was indicated that the project initiates new thinking, harnesses professionalism, smoothens the Bank’s correspondent relationship, helps in redefining and rejuvenating the existing work process and finally allows for fair presentation of financial condition of the Bank. There are also challenges that are associated with adopting IFRS in the Bank. Some of the major challenges identified by the respondents of the study incorporated; IFRS Knowledge Gap and lack of benchmarking, absence of mandatory infrastructures, disparity between existing laws and IFRS requirement, absence of a holistic approach to project management, loss of commitment to the project and resistance to change. The other major findings suggest that there are people, process and system readiness issue in the project. Based on the results of the study it was recommended that the Bank should focus on those issues that are internal to it so as to ensure the successful completion of the project on or before the regulatory deadline
Description
Keywords
project management, loss of commitment, The specific objectives were to examine, main objective of this study was to assess