| Abstract: | Adoption and Implementation of International Financial Reporting Standard (IFRS) in
Ethiopia
This paper examines the adoption and implementation of International Financial Reporting
Standard (IFRS) in Ethiopia. Using a sample of 20 firms selected from regulatory bodies,
commercial banks, insurance companies and auditing and accounting firms. The data was
collected using primary and secondary data collection method. Primary data using questionnaires
and interview. Secondary data reviewing documents, manuals, websites and books. Then the
collected data are analysed using statistical analysis (such as correlation and Chi-Square) and
descriptive statistics present using tables. This study identifies the IFRS adoption and
implementation in Ethiopia with coordination of regulatory bodies for the process, its benefits,
faced challenges though process, and prospects comes from adoption of IFRS for Ethiopia. This
study finding also lack of implementation guidance framework is one of the challenges affects the
process. Second lack of training and still not amended the academia curriculum has its own
negative impact on the accounting professionals. Third finding also about lack of unity among all
stakeholders has highly barrier the implementation of IFRS by the time schedule planned by the
AABE. Next finding about business owners must have awareness about the IFRS and all the
accounting professionals and consultants have responsibility to give some brief introduction for
them regarding benefits. The Chi-Square test result for the hypothesis of the research also suggests
that, adoption of IFRS will; increase transparency of financial report, improve efficiency of
financial report, makes external financing easier, promotes cross border investment in and
improve the credibility of the accounting professional in Ethiopia.
Key Words:, Implementation, |
