An Assessment of Challenges and Prospects of International Financial Reporting Standards (IFRS) in United Bank S.C

Abstract

This study examines the implementation of International Financial Reporting Standards (IFRS) in United Bank S.C. by focusing on processes, practical challenges and prospects, of implementation IFRS as the way forward. The study adopts a qualitative research approach. Specifically, the study uses in-depth interviews with key informants from the Financial Department and other related offices, IFRS implementation team leaders, and from among those who prepare financial statements. In addition, the study employs data obtained through document reviews. The result of the study reveals that implementation of IFRS in United Bank benefits the bank as well as the country by enhancing the quality and comparability of financial reporting, reducing the inconsistent and fragmented financial reporting. Moreover, attracting foreign direct investments increases the Bank’s performance. However, the overall finding shows that implementing IFRS is infested with a multitude of challenges of which lack of competent human resources with IFRS knowledge, lack of top management’s support, lack of strong regulatory and enforcement institution, and, lack of strong accounting practices in the country are some of the prominent ones. This study suggests that to support the sustainable implementation of IFRS and to strengthen the regulatory body and enforcement institution, adequate resources must be put in place.