ST.MARY’S University School of Graduate Studies

Research Journal of Finance and Accounting, 2020

The main purpose of this study is to analyze International Financial Reporting Standard (IFRS) adoption and quality of financial reporting by commercial banks in Ethiopia using qualitative characteristics of accounting information such as: Relevance, Understandability, Comparability, and Faith Representation. The study used the perceptions of preparers of banks financial reports (accounting & finance officer, finance managers as well as IFRS implementation team members) to analyze about IFRS adoption in commercial banks. The study adopted mixed research approach and descriptive research design. More specifically, the study used purposive sampling technique to collect a data; the data was collected through primary and secondary source of data. The primary data was collected through questionnaire and secondary data was from different source of documents. The data was analyzed using descriptive statistics. The finding of the study reveals that; the quality of financial report which is measured through (relevance, understandability, comparability and faith representation) was improved after adoption of international financial reporting standards.

2020

Drawing on Institutional and Economic Network Theories, this study investigated factors influencing International Financial Reporting Standards (IFRS) implementation success in Ethiopian business organizations identified as Public Interest Companies by the government which were expected to adopt IFRS for the year ending June 30, 2018. The study adopted explanatory method to answer the research questions and test hypotheses stated. Data were collected from 123 respondents in 22 first time IFRS adopting business organizations using questionnaires. The findings of the study revealed that economic factors, project governance factors and cultural factors were found to influence project success at 5% level of significance whereas influence of institutional pressures was accepted at 10% level of significance (sig=0.055, closer to 5% of course). Contrary to the literature, economic factors were not positively correlated to IFRS project success as the firms were predominantly operating local...

This paper presents the findings of an empirical study on the benefits, prospects and challenges of adoption of International Financial Reporting Standards (IFRS) in some African countries. A questionnaire was administered to gather data from respondents made up of users and preparers of accounting information using the Twitter social network. The objective was to find out the perception of users and preparers about what the benefits, prospects and challenges of IFRS adoption are in African countries. The results of the study indicate that IFRS adoption in Africa will have the potential to be beneficial to a wide range of stakeholders. The benefits notwithstanding, there are however, a number of challenges to be faced in the process of adoption of the new standard including the ethical environment in Africa. The study recommends among others that a rigorous IFRS capacity building programme should be embarked upon by all regulatory bodies, firms and training institutions in order to provide the needed manpower for IFRS implementation, monitoring and compliance.

Journal of Accounting and Taxation, 2019

The adoption of International Financial Reporting Standards (IFRS) around the world is occurring rapidly to bring about accounting quality improvement through a uniform set of standards for financial reporting standards and harmonization of reporting procedures. For the same purpose, Ethiopia begins the IFRS adoption process since the year 2014. For this study, 200 questionnaires were distributed and administered to collect the required data and the collected data were analyzed using SPSS21. This study also employed descriptive statistics and dimension reduction model to make factor analysis. Based on the model output five (5), major variables were found significant with 66.22% cumulative initial eigenvalue. The main significant variables were adaptability, suitability, constraints, necessity and perceived benefits respectively. Furthermore, upon the findings found, researchers forwarded continuous professional career development, partnership and cooperation with stakeholders and government commitment for allocation of adequate budget should be made for successful adoption of IFRS.

European Journal of Business and Management, 2013

Drawing on extant literature in accounting and financial economics, this study sought to analyze the economic consequences of the adoption of International Financial Reporting Standards (IFRS) by Nigeria through an examination of the major obstacles, benefits and attitudes towards its adoption. As an exploratory study, we drew a sample from the population of Nigerian academics and practitioners who are familiar with the phenomenon of interest. We examined three research questions on the perceptions of Nigerian academics and practitioners about IFRS adoption in Nigeria. The hypotheses were tested using frequency analysis, descriptive statistics, Kruskal-Wallis (K-W) and Chi-square tests. Our findings identified (i) lack of education, understanding and experience by preparers of financial reports with the use of IFRS; and (ii) lack of coverage of IFRS in financial accounting/auditing textbooks as the major obstacles towards its adoption in Nigeria. The results further revealed that: (1) effective IFRS adoption would be valuable to preparers, users, auditors, analysts, and standard setters; and (2) a proper plan to convert all Nigerian companies to IFRS would require training for management, auditors, and investors, along with the pipeline incorporation of IFRS education into accounting curriculum. The policy implication of the study’s findings is the urgent need to integrate IFRS into the accounting curriculum in Nigeria’s higher education system. It also calls for financial regulators and professional accountancy bodies to update their IFRS knowledge in order to maintain their professional competence. Keywords: Accounting Standards, International Financial Reporting Standards (IFRS), Economic Consequences, Developing Country, Politics, Lobbying, Nigeria.

adoption of International Financial Reporting Standard (IFRS) and quality of financial reporting (Relevance, Understandability, Comparability, and Faith Representation) in commercial banks Ethiopian. , 2021

This study intends to assess the adoption of International Financial Reporting Standard (IFRS) and quality of financial reporting (Relevance, Understandability, Comparability, and Faith Representation) in commercial banks Ethiopian. Accordingly, the study used primary data collected through the questionnaire as the main data collection instrument. Using a purposive

Tij S Research Journal of Social Science Management Rjssm, 2014

The study looked at the issues of IFRS's adoption in Nigeria, and its challenges. It also examined the attendant benefits of IFRS in term of high quality, transparent, reliable and comparable financial statement and how it will be of help to Nigeria financial reporting practice. The sample size which comprises of preparers and users of financial statements from reputable quoted public companies and big four accounting firms in Nigeria (i.e KPMG, Akintola William Deloitte, Pricewaterhousecoopers, and Enrst and Young) was drawn from the entire population which comprises of public companies, financial institutions, players in the capital market, government, e.t.c.. Lagos State, the southwest Nigeria, was also picked as the sampling area because this state has the highest concentration of the study's sample size. Descriptive Statistics were used to analyse data collected from both primary and secondary sources. 100 questionnaires containing 28 relevant questions relating to IFRS adoption in Nigeria, its benefits and challenges, were used to collect data from respondents from both users and preparers of financial statement perspectives. However, after the analysis of the data that was empirically gathered, the findings of this study revealed that full disclosure requirements of IFRS and its emphasis on fair value accounting for the measurement of some items of financial statements (e.g item of property, plant and equipments) will lead to high quality, transparent, and reliable financial statements. The findings also concluded that elimination of reporting language barriers will encourage cross border investment and thus more inflows of foreign direct investments.

2019

The objective of this study is to assess the effects of mandatory adoption of IFRS on the audit fees of Commercial Banks (CB) in Ethiopia and it utilized correlational research design with quantitative data collection and analysis on the data gathered from yearly financial audit reports of the banks during the period of 2014 to 2018. Despite population of the study is limited to existing CBs, the study employed purposive sampling technique in the selection of the banks (n = 17) to comply with availability and accessibility of data that excluded the CBE (the only governmental bank) due to lack of complete data. The data has been analyzed with descriptive, independent t-test, correlation and panel regression analysis statistical techniques using STATA and SPSS software packages. Findings of the study showed a significant positive relationship between IFRS and audit fees which shows that IFRS adoption substantially increased audit fees among commercial banks operating in Ethiopia. This is attributed to the general complexity of the IFRS adoption in Ethiopia. The study also finds that banks audited by the Non-GradeA audit firms experience greater audit fee increase in post IFRS period than those audited by the GradeA audit firms. However, the study is limited to the Commercial Banks in Ethiopia, thus, future studies that include several industries might provide better understanding of the influence of IFRS adoption on audit fees.

The study focused on the adoption process of International Financial Reporting Standards (IFRS) on a developing economy, with particular reference to Nigeria. The paper is based on the data obtained from literature survey and archival sources in the context of the globalization of International Financial Reporting and the adoption of International Financial Reporting Standards (IFRS).Nigeria has embraced IFRS in order to participate in the benefits it offers, including attracting foreign direct investment, reduction of the cost of doing business, and cross border listing. In implementing IFRS Nigeria will face challenges including the development of a legal and regulatory framework, awareness campaign, and training of personnel. Recommendations were made to forestall such challenges which include strengthening education and training, establishment of an independent body to monitor and enforce accounting and auditing standards.

This study examines the effect of IFRS adoption on economic growth, using Nigeria and Kenya, for the period 2000-2016. The data which was utilized in this study, was gotten from National bureau of statistics. Descriptive statistics and paired sample t-test were used to analyze the data. Manufacturing sector Gross domestic product (GDP) was used to proxy Economic growth. However, the findings show that there is a significant difference in Economic growth of Nigeria and Kenya between pre and post IFRS adoption. Hence, the study recommends that government should ensure the fully adoption and implementation of IFRS in every possible sector in other to enjoy other benefits that accrue from it. Also, further studies on IFRS adoption and economic growth should employ other variables not used in the study.