Opportunities And Challenges Of International Financial Reporting Standards (ifrs) Implementation In The Case Of Commercial Banks In Ethiopia

The aim of the study is to identify the opportunities and challenges of International FinancialrnReporting Standards (IFRS) Implementation in the case of Commercial Banks in Ethiopia.rnThe study focuses on assessing the opportunities and challenges of IFRS including the factorsrnthat could influence its adoption and post implementation challenges. To achieve thesernobjectives, both primary and secondary data were collected from Accountants, Auditors andrnIFRS implementation who are working in the commercial Banks in Ethiopia who werernselected purposively based on their role and involvement in the implementation Process.rnPrimary data were collected through questionnaire and interview whereas secondary basedrnwere collected through documentary evidence and analyzed by using descriptive analysis.rnThe findings suggest that IFRS has cumbersome requirements, difficult to understandrnapparent technical complexities in IFRS, lack of implementation guidance, difficulty inrndetermining fair value of assets and liabilities, lack of personnel with necessary knowledgernand expertise of IFRS, scarcity of experts for consulting, limited access to IFRS educationrnand training program, limited experiences in applying IFRS, lack of top management’srncommitment and support, lack of trained Auditors to audit under IFRS environment, lack ofrncooperation among departments , resistance to change, lack of IFRS compatible softwarernpackages, difficulty of integrating IFRS with the current accounting system, and IFRS,rnlimited time for preparation and transition before full convergence , high cost of IFRSrnconsulting and auditing, insufficient Availability of Internal data for IFRS conversion are thernclearly outstanding challenges encountered by firms upon the mandatory adoption andrncompliance with IFRS.rnThe finding of open ended questionnaires also suggest that there are weak post IFRSrnimplementation follow up, IFRS is not incorporated in day to day activities since the lastrnreporting date, IFRS-9 not yet implemented by Commercial Banks in Ethiopia except CBE,rnNBE and Ministry of Revenue were not yet revised its laws in line with the requirement ofrnIFRS

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