Challenges and Prospect of International Financial Reporting Standards (IFRS) Implementation in Ethiopian the Case of Financial Institution
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Date
2019-06
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Addis Ababa University
Abstract
Internationally, users of financial statements need consistent, translucent international financial reporting standardized (IFRS) to help them make economic decisions and to enable them to invest in across the globe their capital resources. Ethiopia has recognized the need for accepting those financial reporting standards that were set out by IASB and started implementing it by selecting 78 companies on the first phase as set out by Accounting and Auditing Board of Ethiopia (AABE) strategic plan of action. Therefore, the objective of this research paper is to identity the Prospect would be obtained and challenges encountered during the implementation process which was started from July. 8, 2017 in 78 entities in Ethiopia our study sample is 7 entities. This study deployed descriptive survey research design and applied quantitative research method or approach. The researcher distributed questionnaires to 120 employees selected using purposive sampling of the selected 7 sample entities using stratified sampling technique which were Implementation IFRS in their company.. Primary data were collected through structured questionnaires from staff of selected financial institution. The quantitative data were entered by using SPSS version 20, analyzed and results were presented in figure, tables, percent and frequency. Out of the total questionnaire distributed to 120 respondents 111 questionnaire returned to which is 92.5% response rate. The research analysis and finding indicted the following results increased volatility of earning, high cost of implementation, Complex nature of IFRS, Problem related to IFRS implementation of guidance, Level of Technology Inadequate and Technical Capacity.
Description
A thesis submitted to Addis Ababa University College of Business and Economics in partial fulfillment of the requirements for award of the Masters of Science in Accounting and Finance.
Keywords
Ethiopia, International Finance Reporting Standards