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Adopting International Financial Reporting Standards (IFRS) in Africa: benefits, prospects and challenges

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  • Akintola Owolabi
  • Francis O. Iyoha

Abstract

This paper presents the findings of an empirical study on the benefits, prospects and challenges of adoption of International Financial Reporting Standards (IFRS) in some African countries. A questionnaire was administered to gather data from respondents made up of users and preparers of accounting information using the Twitter social network. The objective was to find out the perception of users and preparers about what the benefits, prospects and challenges of IFRS adoption are in African countries. The results of the study indicate that IFRS adoption in Africa will have the potential to be beneficial to a wide range of stakeholders. The benefits notwithstanding, there are however, a number of challenges to be faced in the process of adoption of the new standard including the ethical environment in Africa. The study recommends among others that a rigorous IFRS capacity building programme should be embarked upon by all regulatory bodies, firms and training institutions in order to provide the needed manpower for IFRS implementation, monitoring and compliance.

Suggested Citation

  • Akintola Owolabi & Francis O. Iyoha, 2012. "Adopting International Financial Reporting Standards (IFRS) in Africa: benefits, prospects and challenges," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 1(1), pages 77-86.
    • Handle: RePEc:ids:ajaafi:v:1:y:2012:i:1:p:77-86
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    References listed on IDEAS

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    Cited by:

    1. Erginbay Ugurlu & Irena Jindrichovska, 2019. "Estimating Gravity Model in the Czech Republic: Empirical Study of Impact of IFRS on Czech International Trade," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 265-281.
    2. Emma I. Okoye & Ugochukwu J. Nwoye, 2018. "IFRS Compliance Appraisal: Evidence from Nigeria and Ghana," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(4), pages 19-27, December.
    3. Joseph Mbawuni, 2019. "Users’ Perception of Financial Reporting Quality in Ghana," Accounting and Finance Research, Sciedu Press, vol. 8(3), pages 187-187, August.
    4. Olayinka Erin & Foluke Oduwole & Paul Olojede & Jonah Arumona, 2018. "Does International Financial Reporting Standards (IFRS) Impact Profitability Ratios of Listed Banks in Nigeria?," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 2(2), pages 79-90.
    5. Akisik, Orhan & Gal, Graham & Mangaliso, Mzamo P., 2020. "IFRS, FDI, economic growth and human development: The experience of Anglophone and Francophone African countries," Emerging Markets Review, Elsevier, vol. 45(C).
    6. O. A. Sanyaolu & F. O. Iyoha & Stephen A. Ojeka, 2017. "International Financial Reporting Standards Adoption and Earnings of Quoted Banks in Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 279-284.
    7. Mbawuni, Joseph, 2018. "Perceived Benefits and Challeges of IFRS Adoption in Ghana: Views of Members of Institute of Chartered Accountants, Ghana (ICAG)," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 9(1), pages 99-114, January.
    8. Joseph Mbawuni, 2019. "Assessing Financial Reporting Quality of Listed Companies in Developing Countries: Evidence from Ghana," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(9), pages 1-29, September.

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