| Abstract: | International Financial Reporting Standards (IFRSs) have been adopted by more than 200 countries across the globe. The main objective of IFRSs is to enhance comparable, transparent and accountable financial information for users. However, its adoption and implementation bring opportunities and pose challenges to the adopter(s). The objective of this study is to assess key challenges of IFRS adoption in public utility enterprises in Ethiopia. A descriptive survey design is used for this study. The target population of the study was the three public utility enterprises which are Ethiopian power utility, Ethio-telecom and Addis Ababa water and sewerage authority as target population for this study. But the Addis Ababa water and sewerage authority are yet to start conversion to IFRS. Due to this excluded from target population. 36 respondents from IFRS project team members and finance staffs of the enterprises who were fully engaged in IFRS adoption and who have IFRS knowledge were selected using purposive sampling. Primary data were collected through questionnaire while secondary data were collected through documentary evidence and primary data is analyzed by using different descriptive statistical tools. Finally, the result of the study revealed that cost of IFRS implementation, system incompatibility and support from regulatory body and professional association, nature of IFRS requirement, weak institutional level support, knowledge gap and Poor project management were key challenges that hinder the adoption of IFRS in public utility enterprises. And recommend on importance of strong professional accountancy body that can have a professional membership with IFAC, collaboration and coordination of AABE with different stakeholders. |
