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st. Mary's University Institutional Repository St. Mary's University Institutional Repository

Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/5044
Title: CHALLENGES AND BENEFITS OF IFRS ADOPTION IN ETHIOPIA: THE CASE OF FIRST PHASE ADOPTERS
Authors: SHIFERAW, WORKU
Keywords: Adoption, International Financial Reporting Standards, Ethiopia
Issue Date: Dec-2018
Publisher: st.mary's University
Abstract: This study examines the benefits and challenges of IFRS during first phase adopters on the implementation process of the standard in Ethiopia. However, the study raised two big research questions those are, what are the practical challenges face while adopt IFRS for the selected companies and what benefits gain by adopting this international standard. To answer this research questions the study uses survey research design and adopt the mixed research approach. In addition, the study used multiple data collection method, including face-to-face interview, questioners and document review. The questionnaire data were also analysed using descriptive statistics, data from interview and document reviews were interpreted qualitatively. Based on the analysis, the results show that IFRS adoption in Ethiopia will result in a number of important benefits like better quality of report, better risk management practice for management, increase cross border investment, reliability and accessibility of reports, financial statement disclosure is improved, mobility of professionals from one country to another country and intra country organization is easy and simple to a wide range of stakeholders, investors, companies and management as well. Furthermore, the main challenges in the process of implementing IFRS include significant cost of adoption of IFRS, need for training, lack of readiness to implement within the time frame set by the board, lack of adequate implementation guidance and lack of enforcement capacity are some of the key challenges facing the transition to IFRS. Finally, the thesis displayed practical implications for the government of Ethiopia and regulatory bodies in setting a firm deadline for the IFRS adoption and in following the proper application of all the adopted standards. The findings also suggest that a rigorous IFRS capacity building program should be embarked by the government, all regulatory bodies, firms and training institutions in order to provide the needed manpower for IFRS implementation.
URI: .
http://hdl.handle.net/123456789/5044
Appears in Collections:Accounting and Finance

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