Benefits and Challenges of International Financial Reporting Standards Adoption in Ghana: Accounts and Business Managers’ Perspective
Benefits and Challenges of International Financial Reporting Standards Adoption in Ghana: Accounts and Business Managers’ Perspective
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Date
2017
Authors
Amanamah, Richmell Baaba
Journal Title
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Publisher
International Journal of Accounting and Financial Reporting
Abstract
The objective of the study was to identify benefits and challenges associated with the
implementation of International Financial Reporting Standard (IFRSs) in Ghana from account
and business managers’ perspective. The study used purposive sampling to collect data from
187 accounting professionals and managers in all business sectors of Ghana. Data was
analysed using descriptive and inferential statistics. A Kruskal-Wallis H non-parametric tests
(KW) was conducted to determine whether there are statistically significant differences of
perception among five groups of the level of professional affiliation and six groups of role
and position. The results revealed that the adoption of the IFRSs has among other benefits,
increase the quality of accounting information, increased investors’ confidence, increase
comparability of financial statement among companies both nationally and internationally,
reduced the cost of equity capital, made the preparation and auditing of financial statement
very transparent and easier. The findings also revealed that though the cost of implementation
was very high and accounts and business managers’ faced some challenges in the
implementation of the standards, the benefit derived from its implementation outweighed the
challenges. Respondents perceived that IFRSs is too complicated for adoption by SMEs.
They recommend that more training is needed to equip professionals in the effective
implementation of IFRSs.
The paper recommends that ICAG should conduct regular training for their members, other
implementers as well as owners and operators of SMEs on the IFRSs especially on the
emerging standards.
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Citation
Amanamah, R. B. (2017). Benefits and challenges of international financial reporting standards adoption in Ghana: Accounts and business managers’ perspective. International Journal of Accounting and Financial Reporting, 7(2), 178-193.