Accounting, FRQ, Emerging Countries Transition: How can a Country Implement an IFRS Standard Change Successfully? (original) (raw)

A research about adoption of international financial reporting standards on G20 countries

The existence of particular accounting and reporting systems for companies operating in different countries creates a difficulty in making comparisons among these companies. One of the most important attempts to fix this problem is the enforcement of IFRS as a single standard in all countries. The aim of this research is to identify the current situation of G20 countries regarding the adoption of IFRS as a global standard. To this end, the current status of IFRS and the process of its adoption in G20 countries is examined in order to determine the extent of IFRS's adoption as a global accounting standard. For this purpose, certain criteria are determined by analyzing the reports prepared by IASB on the IFRS applications in 143 countries and then content analysis of the country reports of the G20 countries are provided based on these criteria. According to the findings of the study, although it is possible to observe that all G20 countries except USA accept IFRS as the global accounting standard, this does not lead to the adoption of IFRS at the national level. Most G20 countries either adopted IFRS or making preparations for its adoption. However, the facts that IFRS is not applied in the world's two biggest economies, USA and China, as well as in Indonesia and India and its only partial application in Saudi Arabia and its status of optional application in Japan are striking. As a result it is possible to claim that even though IFRS has expanded largely, there is still room for progress to become the single global accounting language. Current literature on IFRS usually focuses on single countries or comparisons of few countries. This study will provide a contribution to the field by presenting the current situation in the entire G20 countries.

Winds of change in accounting practices in an emerging market: some observations and thoughts

J. for Global Business Advancement, 2009

In Turkey, publicly traded companies are required to comply with a new set of standards that are essentially similar to the International Financial Reporting Standards (IFRS) since 2005. In this study, we use the results of a survey carried out in Turkey with accounting or finance executives of publicly traded companies regarding their perceptions of the new set of standards and their expectations from the policy makers, compare the findings of global research with the survey results, and report our observations and opinion. The survey results suggest that there was lack of knowledge and experience for appropriate implementation-a common point raised globally as well. Early observations and findings reflect that, although a lot has been achieved on the way to convergence, more consensus and guidance from the national and international standard setters are necessary to fully realise the expected benefits of IFRS.

‘Does accounting regulation matter?’: An experience of international financial reporting standards implementation in an emerging country

Research in Accounting Regulation, 2014

The study investigates the balance between accounting regulation and political influences in the implementation of International Financial Reporting Standards (IFRS) in an emerging country. Forty-three interviews were conducted, from 2010 to 2013. Additionally, enforcement documents from 1998 to 2013 in relation to IFRS were evaluated. The study reveals that lack of accounting regulatory framework and political influences are hindering the effective implementation of IFRS. Most importantly, regarding the balance between accounting regulation and political influences, a high level of political influences is adding more apprehension to the implementation of IFRS. The study contributes to the policymaking agenda of the IFRS implementation literature. The findings are relevant to other emerging economies. In particular, local and international policy makers should rethink the path of the global implementation of IFRS.

A research about adoption of international financial reporting standard on G20 countries

Journal of Human Sciences

The existence of particular accounting and reporting systems for companies operating in different countries creates a difficulty in making comparisons among these companies. One of the most important attempts to fix this problem is the enforcement of IFRS as a single standard in all countries. The aim of this research is to identify the current situation of G20 countries regarding the adoption of IFRS as a global standard. To this end, the current status of IFRS and the process of its adoption in G20 countries is examined in order to determine the extent of IFRS’s adoption as a global accounting standard. For this purpose, certain criteria are determined by analyzing the reports prepared by IASB on the IFRS applications in 143 countries and then content analysis of the country reports of the G20 countries are provided based on these criteria.According to the findings of the study, although it is possible to observe that all G20 countries except USA accept IFRS as the global accounti...

The development of accounting practices and the adoption of IFRS in selected MENA countries

Journal of Accounting in Emerging Economies

Purpose The purpose of this paper is to examine the level of accounting development and the adoption of IFRS in the four foremost economies in the Middle East and North Africa (MENA)—Egypt, Jordan, Libya and UAE. Through the lens of institutional theory, the study investigates the impact of economic, political, legal and cultural institutions on the development of these countries’ accounting practices and their readiness to use IFRS. Design/methodology/approach This research uses accounting development indices obtained from current literature as well as recent World Economic Forum and UNCTAD reports to examine the development of accounting in these MENA countries and their inclination to adopt IFRS. Findings The study identifies a number of impediments to the development of accounting practices and adoption of IFRS in these countries. It also reveals that three of the four MENA countries (Egypt, Jordan and UAE) could be placed on a level playing field with their principal trading pa...

Empirical evidence of the suitability of IFRS in emerging markets

Accounting Research Journal, 2019

PurposeThe purpose of this study was to assess the suitability of International Financial Reporting Standards (IFRS) in emerging markets such as Qatar. The current research attempts to obtain insights into the advantages and disadvantages of IFRS implementation in Qatar based on the perceptions of top management, academics in accounting and external auditors.Design/methodology/approachA questionnaire survey was the main tool used in this research. A total of 120 questionnaires were distributed to financial managers, academics and external auditors. Of the 97 replies (80 per cent), 91 completed questionnaires were analysed.FindingsThe results suggest that IFRS implementation is suitable for the business environment of Qatar because the adoption of IFRS provides many advantages to the Qatari business environment, regulations and stock market without incurring additional major costs. Moreover, IFRS imposes no major constraints on the business environment or Islamic social responsibilit...

Factors that Influence Countries in Fully Adopting International Financial Reporting Standards (IFRS)

Proceedings of the Social and Humaniora Research Symposium (SoRes 2018), 2019

This research aims to examine the factors that influence a country in fully adopting IFRS. The factors being tested are Economic Growth and Foreign Direct Investment. The samples in this study are 65 countries consisting of 37 countries fully adopting IFRS and 28 countries not fully adopting/not adopting IFRS. Hypothesis testing uses Logistic Regression test to determine the effect of each independent variable on the dependent variable. Logistic Regression test results in the first hypothesis prove that economic growth has a positive effect on the decision of the countries in fully adopting IFRS, which mean the first hypothesis is supported. Testing the second hypothesis proves that foreign direct investment does not affect the decision of the countries in fully adopting IFRS, which mean the second hypothesis is not supported.

Adoption of International Financial Reporting Standard: A Literature Review

American Journal of Economics and Business Innovation, 2022

International Financial Reporting Standard (IFRS) refers to a unique, uniform, simple, and easily understandable accounting standard acceptable and applied across the globe by various firms. It is emerging as a powerful device to bring uniformity to financial reporting by companies at the global level. Due to rapid industrialization and internationalization, the countries opened their avenue to foreign corporations. Therefore, it has been necessitated to have an accounting system that could bring uniformity and acceptability to financial reporting across borders. This review article has explored the present situation of the IFRS in the light of its emergence at the global level. The paper also proposes the model by merging the IFRS constructs with FDI, robust financial information reporting, transparency, and comparability construct by drawing together and developing the scale for measuring quality financial information through International Financial reporting standards based on existing literature. Against this backdrop, the present review paper seeks to highlight different dimensions and the pros and cons of using the International Financial Reporting Standard across borders. The content analysis has been adopted as the methodological framework for the literature review. The result of studies have confirmed that IFRS assimilation will improve transparency, comparability across the spectrum.

Cost-benefit analysis of IFRS adoption: developed and emerging countries

Journal of Financial Reporting and Accounting

Purpose The paper aims to build a greater understanding of countries transitioning from local generally accepted accounting principles (GAAP) to International Financial Reporting Standards (IFRS). Second, the study assembles prior literature and examines the issues raised during the convergence. Finally, the paper recognises the implications of successful convergence practices that may be useful to other emerging markets and particular reference to India which is transitioning from local GAAP to IFRS-based principles. Design/methodology/approach The present study is a qualitative analysis that explores the Cost-benefit outcome carried by developed nations. The paper segregates the literature into three segments: developed nations, East Asian countries and the Brazil, Russia, India and China (BRIC) nations. Findings There are numerous issues and implications divulged from studies pertaining to the adoption of IFRS, i.e. corporate governance, fair value accounting and other environmen...

INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ADOPTION: IF, WHEN, HOW?

The paper examines the perceptions of Vietnamese accounting practitioners and academics regarding the optimal approach and timeline of IFRS adoption in Vietnam. Perceptions were obtained and analysed from 3,000 questionnaires sent to Vietnamese auditors, accountants, and accounting academics across Vietnam in 2012. A total of 728 usable responses were received producing an effective response rate of 24 per cent. The majority of the respondents considered that IFRS adoption should be permitted for voluntary adoption rather than mandatory adoption. The results indicate that the staggered convergence approach is more optimal than the big bang approach of IFRS adoption. A five year period for transition and preparation with some difficulties and obstacles associated with IFRS implementation is anticipated. The findings will assist accounting practitioners, educators, and policy makers to prepare themselves for the implications of IFRS convergence and adoption.