36,514 research outputs found
Determinants of IFRS compliance in Africa: analysis of stakeholder attributes
Purpose: This paper examines the drivers of companiesā compliance with IFRS using the
stakeholder salience theory.
Research Methods: We have used panel data from 205 companies to examine the IFRS
compliance level across 13 African countries. Our study has also established the relationship
between stakeholdersā attributes and firmsā compliance with IFRS.
Findings: On IFRS compliance, we found that the average compliance score among the
companies over the period was 73.09% with a minimum score of 62.86% and maximum of
85.61%. We found a significant positive association between audit committee competence
(ACC) and compliance and found the same for chartered accountants on board (AOB). There
is less compliance with the latest standards, such as IFRS 3, 7, and 13. Also, IAS 17, 19, 36,
and 37 are problematic across the sample. We also found that compliance has been increasing
over the years.
Practical implications. For companies, our studies provide empirical evidence on the
importance of having chartered accountantsā corporate boards as well as competent audit
committees involved in ensuring high compliance with IFRS. Our findings also provide
valuable information for professional accounting organizations on the role of its members
(chartered accountants) in the effectiveness of IFRS compliance.
Value/Contribution: This study complements and updates prior studies on IFRS compliance
with findings from Africa, a region that has been neglected in the literature.
It provides empirical evidence on the importance of chartered accountants sitting on corporate
boards in ensuring high compliance with IFRS
Recommended from our members
Challenges and opportunities from adopting IFRS in Saudi Arabia: the case of the banking sector
Purpose: In February 2012, the Saudi Organisation for Certified Public Accountants (SOCPA) formally approved the transition to IFRS "through a Project for the Transition to International Accounting and Auditing Standards", to be completed by 2017 (IFRS, 2017). The Saudi Arabian Monetary Authority (SAMA) now requires all listed and unlisted banks and insurance companies to use IFRS, but all other entities, irrespective of their size, are required to use the local GAAP as issued by SOCPA (IFRS, 2017). This raises questions firstly, about the comparability of financial statements between companies using IFRS and GAAP and secondly, about the reasons why the transition to IFRS has been only partial. A number of studies have investigated IFRS implementation in developing countries (Tyrrall, Woodward and Rakhimbekova, 2007), enhancing our understanding of the importance of IFRS adoption, its benefits and its challenges. None of these, however, have investigated IFRS transition or the associated challenges in the context of the Saudi Arabia. Furthermore, the majority of prior researches in developing countries are descriptive, documenting the implementation tools of IAS/IFRS but lacking any evaluation of the elements which enable or restrict IAS/IFRS dissemination within these countries. No research has been conducted in relation to the institutional pressure that influenced Saudi Arabia to adopt IFRS. This study addresses this gap by adopting new institutional theory to overview the external and internal forces that influenced the country's banking sector to adopt IFRS, and to determine the challenges and opportunities which arose during the adoption process.
Theoretical framework: This study adopts new institutional theory to overview the external and internal forces that influenced Saudi Arabia to adopt IFRS, and to determine the challenges and opportunities which arose during the adoption process. A limited number of studies have discussed the adoption of IFRS in countries such as Saudi Arabia, which have a social, legal and political structure which differs greatly from those countries backing international accounting standards. No research has been conducted in relation to the institutional pressure that influenced Saudi Arabia to adopt IFRS.
Methodology: A pragmatic approach, combining quantitative and qualitative methods, was considered the most suitable for the study. A questionnaire was deployed to uncover the perceptions of the chosen group towards the adoption of IFRS in Saudi Arabia. Semi-structured interviews were then conducted with relevant groups to gather data beyond the scope of the questionnaire and to gain a fuller understanding of participantsā perceptions. Four hundred and forty questionnaires were distributed, of which 254 were returned completed. Twenty-two interviews were conducted with standard setters from SOCPA and SAMA, bank CFOs and external auditors.
Findings: The analysis reveals that most of the study participants agreed with SAMA and SOCPAās decision to adopt IFRS. Indeed, most felt strongly that the standards should have been implemented earlier in Saudi Arabia and in all sectors, not just some. The findings illustrate that the capital market was a key factor influencing Saudi Arabia to shift from its own standards, and that the greatest perceived benefit of IFRS adoption was an improvement in the quality of financial reporting and reporting transparency. The main obstacles were perceived to be the lack of competent specialists in Saudi Arabia and the lack of IFRS implementation guidance. The analysis of the interviews enriched the study results, aiding interpretation and allowing the researcher to draw meaningful conclusions. The results are expected to contribute to the accounting and finance literature on emerging economies and the Gulf countries
Contingencies influencing management accounting practice: a Yemen-based empirical study / Ahmed Abdullah Saad Al-Dhubaibi ā¦ [et al.]
A significant number of management accounting studies have observed various levels of management accounting practice (MAP) adoption. Although academicians and practitioners have argued that advanced MAPs create value and improve the performance of their adopters, researchers have determined that traditional MAPs remain dominant in the market. This study aims to contribute to the extant body of knowledge on this topic by exploring the level of MAP adoption in Yemen and by examining the effect of certain external (environmental) and internal (organisational) factors on the level of MAP advancement. The sample firms include large firms that operate in various economic sectors in Yemen, such as manufacturing, financial, natural resources extraction and service, as well as medium and small firms to achieve sufficient sample size. The International Federation of Accountants (IFAC) framework on management accounting stages is used to classify the levels of MAP advancement. Competition level and structure type (level of delegation) significantly explain the variations in MAP advancement levels among firms in Yemen. A higher degree of competition and amount of delegations can drive firms to adopt more sophisticated MAPs. These results improve our understanding of why some firms invest in upgrading their management accounting systems and target best practices, whereas other firms tend to continue using traditional MA tools
The Impact of Investment in IT on Economic Performance: Implications for Developing Countries
This paper reviews quantitative and qualitative evidence on the impact of IT on economic performance in developed and developing countries. Two strands of this literature are considered: the IT-productivity connection and the effects of IT on labor composition and the work environment. Policy implications for developing countries are considered.
The Relevance of International Financial Reporting Standards to Saudi Arabia: Stakeholder Perspectives
This thesis investigates the suitability of International Financial Reporting Standards (IFRSs) for Saudi Arabia by examining the perceptions of accounting users and preparers. It explores the information needs of the main users of accounting, the factors that represent barriers to the adoption of IFRSs, and the costs and benefits of the adoption of IFRSs.
The study compares Saudi Accounting Standards (SASs) and IFRSs. In addition, a questionnaire survey was conducted and semi-structured interviews were carried out to examine the issues in greater depth in order to answer the research questions. The political nature of accounting standards is investigated, as well as theories of accountability and decision usefulness in order to interpret the results and explore to what extent and in what manner these frameworks function in the Saudi environment.
The Islamic accountability framework would suggest that companies represented by owners and managers are accountable to their stakeholdersā interests, and owners and managers must protect those interests and disclose everything that may help them to discharge their accountability. However, the findings presented in this thesis suggest that practice of the Islamic accountability framework is limited. The influence of religious factors on the accounting system is limited in some cases as there is inadequate disclosure and transparency, such as a lack of information required for Sharia compliance; this affects usersā ability to make decisions. The results also reveal some evidence that accounting standard setting is dominated by political (rather than āuser-needsā) considerations. Furthermore, economic factors override social and cultural factors, including religion, in terms of their influence on the accounting system. The results suggest inter alia that religious factors will not represent a barrier to the use of other standards such as IFRSs.
The findings suggest that the adoption of IFRSs would contribute to enhancing the quality of financial reporting. The results also reveal that financial reporting prepared on the basis of IFRSs provides more of the information required for decision-making. The results also suggest that there is, to some extent, agreement among participants as to the suitability of IFRSs to Saudi Arabia, and that their benefits would eventually overcome the difficulties and problems that may arise from their adoption, although it is still be necessary to consider certain specific requirements, such as those related to Sharia law
Accounting in a Country : The Case of Pakistan
Our paper examines the origins, growth, and the development of accounting practices and disclosures in Pakistan and the factors that influenced them. We traced the early days of accounting in the Indian subcontinent and the British colonial influence over the accounting of newly independent State. We examined the development of accounting through three eras : 1) Independence through 1971, 2) Post 1971 1984, and 3) 1984 to the present. We described how the colonial past and later the international financial institutions such as the Asian Development Bank and the International Monetary Fund played a key role in shaping accounting and reporting practices of the country. Pakistans adoption of International Financial Reporting Standards as national standards in 1985 did not lead to improvement in the quality of financial reporting. Pakistan, though classified as a common law country in literature exhibits most of the properties of code law countries. We argue that lack of investor protection (e.g., minority rights protection, insidertrading protection), judicial inefficiencies, and weak enforcement mechanisms are more critical factors than are cultural factors in explaining the state of accounting in Pakistan. We conclude that it is the enforcement mechanisms that are paramount in improving the quality of accounting in developing economies.culture, Colonial, Corporate governance, Accounting Practices, International Standards, Pakistan
Corporate Governance and International Public Sector Accounting Standards (IPSAS) on the Quality of Accounting Information in Libyan Government Sector
Purpose: The objective of this study was to identify the importance of applying the standards of governance and International Public Sector Accounting Standards (IPSAS) in influencing the quality of accounting information.
Ā
Theoretical framework: Recent literature has reported good results in both corporate governance and IPSAS (Bakhtah & Ammar, 2019). However, there is still much to investigate and learn about IPSAS because it is a recent development.
Ā
Methodology: The study population consists of a number of members of board directors, non-audited members, internal auditors, accountants and department heads in some branches of government entities in the Government Sector of Libya. 400 questionnaires were distributed to them and data was analysed in SPSS and PLS-SEM.
Ā
Findings: The five latent variables (ensuring a sound governance, disclosure, responsibilities of the board of directors, preservation of stakeholdersā rights and fair equal treatment) explain substantial 73.5% of the variance for the quality of accounting information among employees of Libyan banks.
Ā
Research, Practical & Social implications: We suggest a future research agenda and highlight the contributions made to knowledge particularly to both auditing literature and the quality of accounting information literature.
Ā
Originality/value: The findings demonstrate that the adoption of IPSAS will impact an external audit in Libya. IPSAS makes external audit reports uniform and affects external audit notes. The adoption of IPSAS will lead to the sharing of Libyan audit companies with global audit firms to acquire experience audit IPSAS-prepared financial statements. This will increase the external auditorsā findings and knowledge of international accounting standards
- ā¦