The Adoption of International Financial Reporting Standards (IFRS) in Ethiopia: Benefits and Key Challenges
No Thumbnail Available
Date
2012-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
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.
Description
Keywords
Adoption,, Ethiopia, Financial, International, Reporting, Standards,