A Qualitative Comparative Approach to the Adoption of International Financial Reporting Standards (IFRS) in Africa

Zori, Solomon George; Kan, Konan Seny

doi:10.2139/ssrn.2992501

Cited by 8 publications

(14 citation statements)

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“…This focus enables us to observe different degrees of mismatch between the assumptions of international accounting standards and socio‐economic, cultural and political conditions in African countries. The analysis draws on a literature review, data published by the standard‐setter and field research on IFRS in Africa by one of the authors (Zori, ). Our results suggest that conceptual mismatch is likely to have motivational effects that contribute to the geographically unequal participation of actors from African countries in recursive standard‐setting.…”

Section: Transnational Standards and The Global Southmentioning

confidence: 99%

“…The proliferation of IFRS is closely tied to the internationalization of financial markets, the rise of cross‐border capital flows and the financialization of many economies worldwide. Incentives for developing countries to adopt IFRS include economic networking benefits (Ramanna and Sletten, ) as well as coercive, normative and cognitive pressures arising from international organizations such as the World Bank and IMF (Samaha and Khlif, ; Zori, ).…”

Section: The Ifrs Foundation As a Transnational Governance Schemementioning

confidence: 99%

“…Spanish and Portuguese as well as Islamic influences add to the heterogenity of accounting systems and cultures in contemporary Africa (Elad, : 89). Not all African countries developed national accounting systems after independence which explains why some of them adopted early on International Accounting Standards (IAS), the precursor of IFRS (Zori, ).…”

Section: Ifrs In Africa: Increasing Adoption But Continued Underreprmentioning

confidence: 99%

“…Many other countries do not require or even prohibit the use of IFRS because they have other systems in place (non‐adoption). Building on prior work by Ramanna and Sletten () and Elad (), Table in the online Appendix provides a first comprehensive overview of the adoption status of IFRS in African countries (see also Zori, ).…”

Section: Ifrs In Africa: Increasing Adoption But Continued Underreprmentioning

confidence: 99%

“…Francophone countries in Western and Central Africa have resisted pressures from the World Bank and IASB to adopt IFRS because of their alternative OHADA accounting system, which was developed to serve the financial reporting needs of companies in emerging economies. The regional patterns are also a result of coordination within different regional economic unions in Africa that serve as platforms for the development of common accounting systems (Zori, ). In addition, a comparison of adoption patterns in Africa with other world shows remarkable differences.…”

Section: Ifrs In Africa: Increasing Adoption But Continued Underreprmentioning

confidence: 99%

See 4 more Smart Citations

International Accounting Standards in Africa: Selective Recursivity for the ‘Happy Few’?

2017

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This study explores recursivity in international accounting standard‐setting, focusing on participation of actors from African countries. While the International Financial Reporting Standards (IFRS) Foundation bases its legitimacy claims as a global standard‐setter on a combination of expertise and a formally transparent set of recursive procedures for consultation of stakeholders, empirical results show that participation in the latter is geographically very uneven. The article argues that conceptual mismatch between the standard‐setter's objectives on the one hand and the socio‐economic, cultural and political conditions in many African countries on the other leads to selective recursivity that is problematic for the former's legitimacy and effectiveness. These findings are of wider relevance for debates on global standard‐setting and development.

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Section: Transnational Standards and The Global Southmentioning

confidence: 99%

Section: The Ifrs Foundation As a Transnational Governance Schemementioning

confidence: 99%

Section: Ifrs In Africa: Increasing Adoption But Continued Underreprmentioning

confidence: 99%

Section: Ifrs In Africa: Increasing Adoption But Continued Underreprmentioning

confidence: 99%

Section: Ifrs In Africa: Increasing Adoption But Continued Underreprmentioning

confidence: 99%

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International Accounting Standards in Africa: Selective Recursivity for the ‘Happy Few’?

2017

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Explaining the Cross-National Pattern of Policy Shift toward Childcare Deinstitutionalization

Ulybina

2022

International Journal of Sociology

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Does the impact of IFRS on audit fees differ between early and late adopters?

Tawiah

2021

IJAIM

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Purpose This study aims to examine whether the impact of international financial reporting standards (IFRS) on audit fees differs between early and late adopters. Design/methodology/approach The authors use robust econometric estimation on a sample of 314 firms from both early and late IFRS adopting countries. Findings The authors find that IFRS is positively and significantly associated with an increase in audit fees for early adopters, but the impact is very weak for late adopters and insignificant in some cases. The results on auditing time suggest that increase in audit fees around IFRS adoption is due to an increase in audit reporting lags. After accounting for pre- and post-years, the authors find that the relationship between IFRS and audit fees, as well as audit time for late adopters, is significant only in the adoption year. However, early adopters experience a significant increase in audit fees and audit time in the transition year to one-year post-adoption. Practical implications The findings imply that countries that are yet to adopt IFRS are less likely to experience a significant increase in audit fees audit time. Hence, is probable that the benefit of IFRS will outweigh the cost. Originality/value The results, therefore, suggest that early adopters paid a premium for been the first users of IFRS, which is consistent with any innovation. The study provides new insights by demonstrating that the consequences of IFRS differ between early and late adopters.

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A Qualitative Comparative Approach to the Adoption of International Financial Reporting Standards (IFRS) in Africa

Cited by 8 publications

References 50 publications

International Accounting Standards in Africa: Selective Recursivity for the ‘Happy Few’?

International Accounting Standards in Africa: Selective Recursivity for the ‘Happy Few’?

Explaining the Cross-National Pattern of Policy Shift toward Childcare Deinstitutionalization

Does the impact of IFRS on audit fees differ between early and late adopters?

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