EMPIRICAL EVIDENCE OF THE SUITABILITY OF IFRS FOR BANKING SECTOR IN SUB-SAHARAN AFRICAN COUNTRIES
DOI :
https://doi.org/10.12775/CJFA.2021.008Mots-clés
IFRS, suitability, Sub-Saharan Africa region, Africa, Ethiopia, Ethiopian banking sectorRésumé
The reason for this investigation was to survey the appropriateness of International Financial Reporting Standards (IFRS) in sub-Saharan African nations banking sector like Ethiopia. The following research endeavors to acquire experiences into the benefits and detriments of IFRS execution in Ethiopian Banking sector depending on the view of banks financial directors, scholastics in accounting and external auditor. Examination is insightful of online overview, which intends to clarify the appropriateness of IFRS as opposed to depict a population. Along these lines, representativeness of the example to the population was not the objective of the examination; it endeavors rather to guarantee legitimacy of the information by applying purposive testing (Oppenheim, 1992). In such manner an aggregate of 30 surveys were conveyed to banks financial supervisors, scholastics and external auditors who have rich information and involvement with IFRS execution in financial sector in Ethiopia. Of the 26 answers (87 percent), 26 finished polls were broke down. The outcomes recommend that IFRS execution is appropriate for the banking sector of Ethiopia regardless of whether banks are causing extra significant expenses to carry out the standards. The selection of IFRS gives numerous benefits to the financial sector climate without logical inconsistency with Ethiopian financial laws and corporate duty. The advantages that the financial sector in Ethiopia will get from IFRS execution pertinently and dependably addresses the financial reports more than its execution cost.
Références
Africa Development Bank (ADB) (2020). African Economic Outlook 2020, https://www.afdb.org/en/knowledge/publications/african-economic-outlook.
Barth, M.E. (2008). Global financial reporting: Implications for US. The Accounting Review, 83(5), 1159-1179.
Benjamin, J.J., & Stanga, K.G. (1977). Differences in disclosure needs of major users of major financial statements. Accounting and Business Research, 7(27), 187-192. http://dx.doi.org/10.1080/00014788.1977.9728702.
Callao, S., Jarne, J.I., & Laínez, J.A. (2007), Adoption of IFRS in Spain: effect on the comparability and relevance of financial reporting. Journal of International Accounting, Auditing and Taxation, 16(2), 148-178.
Christian, C., & Kohlmeyer, J.M., III. (2009). U.S. adoption of international accounting standards: Why now? Commercial Lending Review, 8-13.
Elias, N. (2012). Discussion of the impact of mandatory IFRS adoption on accounting quality: evidence from Australia. Journal of International Accounting Research,11(1), 147-154.
Ethiopian Government (2014). A proclamation to provide for Financial Reporting, Proclamation No. 847/2014. Federal Negarit Gazette, 20th Year, No. 81, Addis Ababa, December,7714.
Gordon, E.A. (2008). Sustainability in Global Financial Reporting and Innovation in Institutions. Accounting Research Journal, 21(3), 231-238. http://doi.org/10.1108/10309610810922486.
Houqe, M., & Monem, R. (2016). IFRS adoption, extent of disclosure, and perceived corruption: a Cross-Country study. The International Journal of Accounting, 51(3),363- 378. http://dx.doi.org/10.1016/j.intacc.2016.07.002.
International Accounting Standards Board (IASB) (2010). Conceptual Framework for Financial Reporting (the IFRS Framework). London: International Accounting Standards Board.
International Accounting Standards Committee (IASC) (1989). The IASC Framework: Framework for the Preparation and Presentation of Financial Statements. London: International Accounting Standards Committee.
Jermakowicz, E.K., & Gornik-Tomaszewski, S. (2006). Implementing IFRS from the perspective of EU publicly traded companies. Journal of International Accounting, Auditing and Taxation, 15(2), 170-196. http://dx.doi.org/10.1016/j.intaccaudtax.2006.08.003.
Leuz, C. (2003). IAS versus US GAAP: information asymmetry-based evidence from Germany’s new market. Journal of Accounting Research, 41(3), 445-472.
Mardini, G., Crawford, L., & Power, D. (2015). Perceptions of external auditors, preparers and users of financial statements about the adoption of IFRS 8. Journal of Applied Accounting Research, 16(1), 2-27. http://dx.doi.org/ 10.1108/JAAR-09-2012-0066.
Mardini, G.H., & Tahat, Y. (2017). An empirical evidence on audit selection and audit rotation: the case of Qatari listed companies. International Journal of Accounting, Auditing and Performance Evaluation, 13(1), 99-122. http://dx.doi.org/10.22495/rcgv6i3c1art2.
Mesele, M. (2019). Financial Sector Development and Economic Growth in Ethiopia: Literature Review. Journal of Finance and Accounting, 10(5), 1-11. http://dx.doi.org/10.7176/RJFA/10-5-01.
Mohammadi, A., & Mardini, G.H. (2016). Financial instruments disclosure: the case of Qatari listed banks. Afro-Asian J. Of Finance and Accounting, 6(2), 160-182.
Oppenheim, A.N. (1992). Questionnaire, design, interviewing and attitude measurement. London: Pinter Pub Ltd.
Pasricha, J.S., & Teferi, D.A. (2016). IFRS Adoption Progress in Ethiopia. Research Journal of Finance and Accounting, 7(1), 55-65.
Rahman, A., Lei, C., & Courtenay, S. (2014). The effect of IFRS adoption conditional upon the level of pre-adoption divergence. The International Journal of Accounting, 49(2), 183-189.
Russell, M. (2015). Continuous disclosure and information asymmetry. Accounting Research Journal, 28(2), 195-224.
Tahat, Y., Dunne, T., Fifield, S., & Power, D. (2016). The impact of IFRS 7on the significance of financial instruments disclosure: evidence from Jordan. Accounting Research Journal, 29(3), 241-273.
Tawiah, V. (2019). The State of IFRS in Africa. Journal of Financial Reporting and Accounting, 17(4), 635-649. http://dx.doi.org/10.1108/JFRA-08-2018-0067.
Yitayew, M. (2016). IFRS Adoption in Ethiopia: A Critical Analysis of the Process, Issues and Implications. A Thesis Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Master of Science in Accounting and Finance.
Zeghal, D., & Mhedhbi, K. (2006), An analysis of the factors affecting the adoption of international accounting standards by developing countries. The International Journal of Accounting, 41(4), 373-386.
Téléchargements
Publiée
Comment citer
Numéro
Rubrique
Licence
(c) Tous droits réservés Copernican Journal of Finance & Accounting 2021
![Creative Commons License](http://i.creativecommons.org/l/by-nd/4.0/88x31.png)
Ce travail est disponible sous licence Creative Commons Attribution - Pas de Modification 4.0 International.
Stats
Number of views and downloads: 383
Number of citations: 0