Financial institutions in Ethiopia as regulated by Accounting and Auditing Board of Ethiopiarn(AABE) complied with IFRS requirements as first implementers of the standard. To this end, thernstudy conducted to examine the concerns regarding prospect, challenges and the potential costsrnconcomitant with implementing International Financial Reporting Standard project in BerhanrnBank. This research paper documents both primary and secondary dataâ€™s to meet objectives ofrnthe research. The study used a mixed research approach; where questionnaire data werernanalyzed quantitatively using descriptive statistics, data from interview and document reviewsrnwere interpreted qualitatively. The major findings of the study demonstrated that the largernmajority of the respondents agreed that International Financial Reporting Standard project inrnBerhan Bank involved potential costs that arise mainly from the rush process followed by thernregulatory body, consultantâ€™s fee and training costs can be mentioned. In addition, the projectrnencountered a number of challenges in implementation; including, lack of sufficient knowledgernand experience, complex nature of the project and absence of guidance and support from thernregulatory body are found to be the core challenges. Despite this, it is indicated that there is anrnoverwhelming support among respondents in favor of the project. Further, the study reveals thatrnimplementation of International Financial Reporting Standard bring potential benefits to thernBank through enhancing reliable financial reports, improving standard of financial disclosure,rnameliorating effectiveness of monitoring and controlling, reducing irregularities in reporting,rnand smoothening international banking operation of the Bank. Based on the findings, the studyrnsuggests the bank to look into issues internal to the bank domain and enhance internal capacityrnas wellto improve the engagement of the management towards the project