ASSESMENT OF INTERNATIONAL FINANCIAL REPORTING STANDARD IMPLEMENTATION EFFECTIVENESS: THE CASE OF ETHIO-TELECOM

Abstract

Globally, the use of IFRSs as universal financial reporting language is gaining momentum across the globe as more countries are converging their local standards with it. Since Ethiopian x financial market and economy is on development it needs advanced accounting system to complement the globalization trend of the world economy. This study aims to identify IFRS implementation effectiveness by Ethio-telecom. The study employed a descriptive research type and Purposive sampling was used for the sampling technique, the questionnaire data were analyzed using descriptive statistics and data from interview were interpreted quantitatively. Out of the total questionnaires distributed to 34 respondent 30 questioners returned to which 88.2% response rate. The study investigates the benefits gained and challenges faced in implementing IFRS by Ethio-telecom. The research findings indicated that IFRS implementation in Ethio- telecom results in a number of important benefits to a wide range of stakeholders. The benefits are that avail quality information for decision making, for better planning purposes, for improving the transparency level, and for growing quality of financial reporting. While Lack of availability of competent professions and professional institutions,. Insufficiency professional evaluators, estimation problem to use of fair value, and complexity of the standards and lack of implementation guidance are Major challenges to Ethio-telecom. In addition, the finding also recommended that stakeholders involvement support Ethio-telecom availability of real-time financial statements, regulatory oversight and enforcement, enhance access to capital, realize of risk and return, facilitates mergers and acquisitions, and raise competitiveness.