IMPLEMENTATION OF IFRS IN ETHIOPIAN BANKS: AN ASSESSEMENT OF BANKS’ RELUCTANCE TO IMPLEMENT IT, 2015

Dr.P.FareedMastan; ZINABU GEBRU; A.Anuradha; FISSA KASSA

Volume : IV, Issue : VII, July - 2015

IMPLEMENTATION OF IFRS IN ETHIOPIAN BANKS: AN ASSESSEMENT OF BANKS’ RELUCTANCE TO IMPLEMENT IT, 2015

Dr. P. Fareedmastan, Zinabu Gebru, A. Anuradha, Fissa Kassa

Abstract :

<p>&nbsp;IFRS represents the most important accounting regulatory change and demand in recent years globally.Since Ethiopian Banks are reluctant to implement IFRS, this study focused on reluctant factors. Descriptive research with partial explanatory design was conducted with structured questionnaire.This study identified IFRS implementing challenges like high implementation costs, the complexity of financial reporting, lack of IFRS implementation agent, lack of IFRS implementation guidance, increased volatility of earnings, lack of availability of competent specialists, high level training requirement, problem with the IT system in handling the transition to IFRS, lack of proper instructions from regulatory bodies, and problem with IFRS use of fair value accounting. Hence it is recommended the government of Ethiopia better to finalize the already started tasks of organizing a separate institute fostering the implementation of IFRS, and issuance of an enforcing legislation for the implementation of IFRS an Educational institutions should focus on curriculum revision accordingly.</p>