Factors Influencing the Adoption of International Financial Reporting Standards for Small and Medium Enterprises (IFRS for SMES): The Case of SMEs in Addis Ababa, Ethiopia
| dc.contributor.advisor | Tekalign, Nega (PhD) | |
| dc.contributor.author | Desta, Amenu | |
| dc.date.accessioned | 2020-08-13T09:02:41Z | |
| dc.date.accessioned | 2023-11-04T07:57:46Z | |
| dc.date.available | 2020-08-13T09:02:41Z | |
| dc.date.available | 2023-11-04T07:57:46Z | |
| dc.date.issued | 2020-06 | |
| dc.description | A Thesis Submitted in Partial Fulfillment of the Requirements for Master of Science Degree (M.Sc.) In Accounting and Finance | en_US |
| dc.description.abstract | The International Accounting Standards Board (IASB), in its objectives, supposes that the beneficial effects from IFRS adoption include transparency, accounting quality and reduced cost of capital. In the year 2014, the Ethiopian government decided to adopt International Financial Reporting Standard for small and medium enterprises (IFRS for SMEs). This study examines factors that affect the adoption of International Financial Reporting Standard for Small and Medium Enterprises (IFRS for SMEs): The Case of SMEs in Addis Ababa, Ethiopia. The study employed explanatory survey design incorporating mixed research approach. The stratified random sampling technique across five sectors was used. To obtain answers to the research questions, questionnaires were distributed seeking the opinion of respondents. A total of 375 questionnaires were distributed. Out of which 232 was returned. The questionnaire data were analyzed using descriptive statistics and inferential statistics. Data from interviews were interpreted qualitatively. Quantitative data collected was analyzed with STATA Version 14.0 and logistic regression analysis was employed. The results of the study showed that most SMEs employees lacked awareness about IFRS for SMEs. The study results also revealed that size of a firm, lack of accounting education and inefficient practical training are among the factors that influences the adoption of IFRS for SMEs. Little or no effort is being made by regulatory body to monitor, review and enforce SMEs to adopt the standard in the SMEs sector. Overall, the findings of the study showed that the majority of SMEs in Addis Ababa are not ready to adopt this standard yet. The study recommends SMEs to do their best in developing awareness of their employees towards the standard through organizing the necessary training, accessing materials from internet and made available them in the working environment and also AABE should do enforcement activities through onsite inspection and other mechanisms such as collaborating with banks and Ethiopian Ministry of Revenue to ensure successful adoption of the standard. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/22055 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Financial Reporting, the Standard | en_US |
| dc.title | Factors Influencing the Adoption of International Financial Reporting Standards for Small and Medium Enterprises (IFRS for SMES): The Case of SMEs in Addis Ababa, Ethiopia | en_US |
| dc.type | Thesis | en_US |