This study examines the challenges of adoption International Financial Reporting Standardrn(IFRS) among medium enterprises of Addis Ababa City Administration, Ethiopia. However, thernstudy raised research question that is, what are the practical challenges face while adopt IFRSrnfor the selected companies. To answer this research question the study uses survey researchrndesign and adopt the mixed research approach. In addition, the study used multiple datarncollection method, including face-to-face interview, questioners and document review. Thernquestionnaire data were also analyzed using descriptive statistics, data from interview andrndocument reviews were interpreted qualitatively. Based on the analysis it was found out thatrnthere is a considerable awareness among the medium enterprises that the implementation IFRSrnimproves the quality of financial reporting, transparency, accountability and economicrnefficiency the results also indicated that that medium enterprises in Addis Ababa facernnumerous challenges in the process of implementing IFRS include significant cost of adoptionrnof IFRS, lack of consistent training and awareness about IFRS, lack of readiness to implementrnwithin the time frame set by the board, lack of adequate implementation guidance and lack ofrnenforcement capacity. The thesis, thus, pointed out practical implications for the government ofrnEthiopia and regulatory bodies in setting a firm deadline for the IFRS adoption and inrnfollowing the proper application of all the adopted standards. The findings also suggest that arnconsistent and well focused IFRS capacity building program should be designed by therngovernment, all regulatory bodies, firms and training institutions in order to provide the neededrnmanpower for IFRS implementation.