The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach

Abebe Gibru; Mezgebu Aynalem

doi:doi:10.11648/j.jim.20190806.11

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The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach

Abebe Gibru, Mezgebu Aynalem

Published in Journal of Investment and Management (Volume 8, Issue 6)

Received: 9 September 2019 Accepted: 29 October 2019 Published: 6 January 2020

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Abstract

Currently, International Financial Reporting Standards (IFRS) have been adopted by over 143 countries all over the world. The aims of this standard is to develop, in the public interest, a single set of high-quality, comprehensible, enforceable and globally accepted financial reporting standards based on clearly expressed principles and legislations. Nevertheless, its adoption procedure creates challenges to the adopter. Thus, the purpose of this study was to investigate the possible challenges of adoption of international financial reporting standards (IFRS). A sample of fifteen studies and articles related to challenge of International Financial Reporting Standards adoption that had been done starting from 2012 were selected from journal articles; Master of Science thesis (MSC) and master of business administration (MBA) thesis, then the collected data were analyzed using qualitative meta- synthesis which is presented using tables and narratives. The study found out that cost of adoption, training of relevant accounting professional, lack of competent man power, lack of proper financial reporting guidance, use of fair value accounting in comparison to historical cost method, Lack of proper instructions from regulatory bodies, increases the risk for handling in interpretation of financial statements and modernized information technology system in handling the transitions to standard were the main challenges of International Financial Reporting Standards adoption.

Published in	Journal of Investment and Management (Volume 8, Issue 6)
DOI	10.11648/j.jim.20190806.11
Page(s)	86-93
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

IFRS, Regulatory Bodies, Challenge of IFRS

References

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APA Style

Abebe Gibru, Mezgebu Aynalem. (2020). The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach. Journal of Investment and Management, 8(6), 86-93. https://doi.org/10.11648/j.jim.20190806.11

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ACS Style

Abebe Gibru; Mezgebu Aynalem. The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach. J. Invest. Manag. 2020, 8(6), 86-93. doi: 10.11648/j.jim.20190806.11

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AMA Style

Abebe Gibru, Mezgebu Aynalem. The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach. J Invest Manag. 2020;8(6):86-93. doi: 10.11648/j.jim.20190806.11

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@article{10.11648/j.jim.20190806.11,
  author = {Abebe Gibru and Mezgebu Aynalem},
  title = {The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach},
  journal = {Journal of Investment and Management},
  volume = {8},
  number = {6},
  pages = {86-93},
  doi = {10.11648/j.jim.20190806.11},
  url = {https://doi.org/10.11648/j.jim.20190806.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20190806.11},
  abstract = {Currently, International Financial Reporting Standards (IFRS) have been adopted by over 143 countries all over the world. The aims of this standard is to develop, in the public interest, a single set of high-quality, comprehensible, enforceable and globally accepted financial reporting standards based on clearly expressed principles and legislations. Nevertheless, its adoption procedure creates challenges to the adopter. Thus, the purpose of this study was to investigate the possible challenges of adoption of international financial reporting standards (IFRS). A sample of fifteen studies and articles related to challenge of International Financial Reporting Standards adoption that had been done starting from 2012 were selected from journal articles; Master of Science thesis (MSC) and master of business administration (MBA) thesis, then the collected data were analyzed using qualitative meta- synthesis which is presented using tables and narratives. The study found out that cost of adoption, training of relevant accounting professional, lack of competent man power, lack of proper financial reporting guidance, use of fair value accounting in comparison to historical cost method, Lack of proper instructions from regulatory bodies, increases the risk for handling in interpretation of financial statements and modernized information technology system in handling the transitions to standard were the main challenges of International Financial Reporting Standards adoption.},
 year = {2020}
}

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TY  - JOUR
T1  - The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach
AU  - Abebe Gibru
AU  - Mezgebu Aynalem
Y1  - 2020/01/06
PY  - 2020
N1  - https://doi.org/10.11648/j.jim.20190806.11
DO  - 10.11648/j.jim.20190806.11
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 86
EP  - 93
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20190806.11
AB  - Currently, International Financial Reporting Standards (IFRS) have been adopted by over 143 countries all over the world. The aims of this standard is to develop, in the public interest, a single set of high-quality, comprehensible, enforceable and globally accepted financial reporting standards based on clearly expressed principles and legislations. Nevertheless, its adoption procedure creates challenges to the adopter. Thus, the purpose of this study was to investigate the possible challenges of adoption of international financial reporting standards (IFRS). A sample of fifteen studies and articles related to challenge of International Financial Reporting Standards adoption that had been done starting from 2012 were selected from journal articles; Master of Science thesis (MSC) and master of business administration (MBA) thesis, then the collected data were analyzed using qualitative meta- synthesis which is presented using tables and narratives. The study found out that cost of adoption, training of relevant accounting professional, lack of competent man power, lack of proper financial reporting guidance, use of fair value accounting in comparison to historical cost method, Lack of proper instructions from regulatory bodies, increases the risk for handling in interpretation of financial statements and modernized information technology system in handling the transitions to standard were the main challenges of International Financial Reporting Standards adoption.
VL  - 8
IS  - 6
ER  -

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Author Information

Abebe Gibru

Department of Accounting and Finance, Debre Markos University, Burie Campus, Burie, Ethiopia
Mezgebu Aynalem

Department of Agri-Business and Value Chain Management, Debre Markos University, Burie Campus, Burie, Ethiopia

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APA Style

Abebe Gibru, Mezgebu Aynalem. (2020). The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach. Journal of Investment and Management, 8(6), 86-93. https://doi.org/10.11648/j.jim.20190806.11

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ACS Style

Abebe Gibru; Mezgebu Aynalem. The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach. J. Invest. Manag. 2020, 8(6), 86-93. doi: 10.11648/j.jim.20190806.11

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AMA Style

Abebe Gibru, Mezgebu Aynalem. The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach. J Invest Manag. 2020;8(6):86-93. doi: 10.11648/j.jim.20190806.11

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@article{10.11648/j.jim.20190806.11,
  author = {Abebe Gibru and Mezgebu Aynalem},
  title = {The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach},
  journal = {Journal of Investment and Management},
  volume = {8},
  number = {6},
  pages = {86-93},
  doi = {10.11648/j.jim.20190806.11},
  url = {https://doi.org/10.11648/j.jim.20190806.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20190806.11},
  abstract = {Currently, International Financial Reporting Standards (IFRS) have been adopted by over 143 countries all over the world. The aims of this standard is to develop, in the public interest, a single set of high-quality, comprehensible, enforceable and globally accepted financial reporting standards based on clearly expressed principles and legislations. Nevertheless, its adoption procedure creates challenges to the adopter. Thus, the purpose of this study was to investigate the possible challenges of adoption of international financial reporting standards (IFRS). A sample of fifteen studies and articles related to challenge of International Financial Reporting Standards adoption that had been done starting from 2012 were selected from journal articles; Master of Science thesis (MSC) and master of business administration (MBA) thesis, then the collected data were analyzed using qualitative meta- synthesis which is presented using tables and narratives. The study found out that cost of adoption, training of relevant accounting professional, lack of competent man power, lack of proper financial reporting guidance, use of fair value accounting in comparison to historical cost method, Lack of proper instructions from regulatory bodies, increases the risk for handling in interpretation of financial statements and modernized information technology system in handling the transitions to standard were the main challenges of International Financial Reporting Standards adoption.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach
AU  - Abebe Gibru
AU  - Mezgebu Aynalem
Y1  - 2020/01/06
PY  - 2020
N1  - https://doi.org/10.11648/j.jim.20190806.11
DO  - 10.11648/j.jim.20190806.11
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 86
EP  - 93
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20190806.11
AB  - Currently, International Financial Reporting Standards (IFRS) have been adopted by over 143 countries all over the world. The aims of this standard is to develop, in the public interest, a single set of high-quality, comprehensible, enforceable and globally accepted financial reporting standards based on clearly expressed principles and legislations. Nevertheless, its adoption procedure creates challenges to the adopter. Thus, the purpose of this study was to investigate the possible challenges of adoption of international financial reporting standards (IFRS). A sample of fifteen studies and articles related to challenge of International Financial Reporting Standards adoption that had been done starting from 2012 were selected from journal articles; Master of Science thesis (MSC) and master of business administration (MBA) thesis, then the collected data were analyzed using qualitative meta- synthesis which is presented using tables and narratives. The study found out that cost of adoption, training of relevant accounting professional, lack of competent man power, lack of proper financial reporting guidance, use of fair value accounting in comparison to historical cost method, Lack of proper instructions from regulatory bodies, increases the risk for handling in interpretation of financial statements and modernized information technology system in handling the transitions to standard were the main challenges of International Financial Reporting Standards adoption.
VL  - 8
IS  - 6
ER  -

Copy | Download