The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach
Journal of Investment and Management
Volume 8, Issue 6, December 2019, Pages: 86-93
Received: Sep. 9, 2019; Accepted: Oct. 29, 2019; Published: Jan. 6, 2020
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Authors
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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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.
Keywords
IFRS, Regulatory Bodies, Challenge of IFRS
To cite this article
Abebe Gibru, Mezgebu Aynalem, The Possible Challenges of Adoption of International Financial Reporting Standards: A Qualitative Meta-analysis Approach, Journal of Investment and Management. Vol. 8, No. 6, 2019, pp. 86-93. doi: 10.11648/j.jim.20190806.11
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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