The last question is to assess the factors ie Institutional Enforcement

The last question is to assess the factors ie

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The last question is to assess the factors (i.e Institutional, Enforcement mechanism and availability of the required technical capacity) that could affect the implementation of IFRS in 29
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Ethiopia in case of east African bottling share company, dire dawa. As a general information the question that can serve to assess and understand the profile of the respondents, the current status & profile of institutions and to understand the awareness of the respondent about IFRS. The study used document analysis (proclamations, annual reports, legislations, directives, papers on IFRS and other documents), interview with finance managers and audit directors is made and self-administered questionnaire to Finance heads and accountants are also distributed. Questionnaire data were Analyzed using descriptive statistics. The study on the implementation of IFRS by the companies mainly shows that implementation of IFRS leads to improved comparability & reliability of financial statements; reduce cost of capital of the companies through lower cost of information, greater market share, and reduced information asymmetry and others. The survey result shows that the respondents identify various IFRS implementing challenges of the companies that high implementation costs, the complexity of financial reporting, lack of IFRS implementation agent, lack of IFRS implementation guidance, lack of availability of competent specialists, high level training requirement, less familiarity with the IT challenges in handling the implementation of IFRS, lack of proper instructions from regulatory bodies, and problem with IFRS implementation proper plan and absence of commitment & proper plan of the companies to implement IFRS are identified as factors that makes to implement IFRS. 5.2. Conclusion Definitely international financial reporting standards are vital in developing and building detailed quality financial reports that fit in with company operations. The study found that Adoption of IFRS purports numerous benefits for East African bottling Share company including, improves the efficiency and effectiveness of financial reporting, provides reliable and comparable financial statements, makes external financing easier, provides greater reporting transparency and enables greater effectiveness of the internal audit. It also provides benefits for other international organizations like providing better information for decision making, increase stake holders confidence on financial reports and enhances transparency of the companies reports .IFRS can minimize information asymmetry between employees and management and between the management and customers (stakeholders) that it helps to reduce uncertainties and better risk management, provides better information for decision making by the banks management and promotes cross border investment.
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  • Spring '16
  • hassen
  • Accounting, International Financial Reporting Standards

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