Implementation of International Financial Reporting Standards: Its Practices, Challenges and Prospects: The Case of Commercial Banks in Ethiopia

摘要

The aim of this study is to examine challenges, prospects and factors that affect the implementation of International Financial Reporting Standards at the commercial banks in Ethiopia. The study adopted a concurrent mixed research approach. Data were collected through questionnaire and interview. Descriptive and econometric analysis was used for the quantitative data, and data from interview were analysed through narration. Based on the descriptive analysis, all banks have practiced the International Financial Reporting Standards (IFRS) highly. Beside this, the lack of guidance and consulting services, high cost of training and consulting services, the complexity nature of most standards and the shortage of time set by the regulatory bodies are among the most important challenges. The international comparability, transparency and quality of the financial reporting system are among the prospects to implement IFRS. In addition, the result of stepwise multiple regression analysis also reveals that information technology system, attitude and perceived ease of use have highly contributed for the implementation of IFRS at commercial banks in Ethiopia. Based on the findings, the study recommends that the government, commercial banks and other concerned bodies in the country should care for the successful implementation of IFRS.