CHALLENGES OF IFRS ADOPTION IN ETHIOPIA IN MANUFACTURING CAMPANIES: IN CASE OF ROHA PACK PLC

Abstract

The study aspires to examine the challenges of International Financial reporting standards in Ethiopian Manufacturing industry. To answer the research question and it achieve the objective of the study this paper adopted qualitative research approach. The questioner data were analyzed by using descriptive statistics and data from interview and document review were interpreted qualitatively. The target population selected for this study is all the IFRS adoption team members, trained employees and other concerned staffs. The study also find with eight variables namely in need of requiring competitive professionals, amendment of legal and authority body requirements, difficulty of obtaining conducive environment, lack of adequate awareness on stakeholders are the main challenges of IFRS adoption in manufacturing industries. Finally the study recommended that the relevant of availability of strong professional bodies and revise the curriculum for competitive human power, sufficient consultation bodies and making universities a strong remedies to avoid the gap on qualified professionals area. The study also looks at network effect of IFRS, the importance of IFRS, and gave appropriate recommendations that will aid effective implementation of the international financial reporting standards. Companies also should have strongly support their finance team and help to upgrade themselves by simultaneous trainings continuously.