| Abstract: | This study aims to assess the benefit and challenges of International Financial Reporting
Standards (IFRS) adoption in Ethiopian Construction Design and Supervision Works
Corporation, by adopting a descriptive research type and a survey research design for the
research design. In addition, a mixed or pragmatic research approach was applied. Furthermore,
sampling for small population size is determined taking the whole finance department staff for
interview and questionnaire distributions. The questionnaire data were analyzed using descriptive
statistics and data from interview were interpreted qualitatively. Statistical analysis was
undertaken on the resulting data through SPSS version 20 model and accordingly major outputs
have been found. The followings are the findings from the analysis. Implementing IFRS in the
ECDSWC will provide several significant benefits, including lower capital costs, increased
transparency and understandability, easier foreign investment and financing, more consistent and
appropriate financial statements, better information for decision-making, and an improved audit
system. Therefore, the top management and decision maker of ECDSWC need to adopt IFRS
financial reporting which increase the benefits of adoption of IFRS. Furthermore, employee in the
corporation needs the knowledge, skills, and tools to do their duties. Regular training programs
in the form of workshops and seminars need to be organized by management for employees and
management staff as well as to improve their skills and knowledge. Beyond this, to enable a smooth
implementation process, impact assessment, planning & designing, realization and data
conversion should be recommended for effective implementation. |
