The Advantages and the Challenges of Adopting IFRS into UAE Stock Market

Alsaqqa, Ihab; Sawan, Nedal

doi:10.5539/ijbm.v8n19p1

Cited by 21 publications

(24 citation statements)

References 58 publications

(68 reference statements)

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“…In each country, there are extensive discussions about the influence of the IAS/IFRS system on enterprises, which is proved by a lot of performed studies. Their authors point out the reasons for the introduction of IFRS, and they confirm that in relation to the transition to IAS/IFRS there has been growth of comparability and transparency of information published in accounting reports [9][10][11][12]. They also point out both obstacles and problems [10-11; 13], [14], and advantages coming from the full application of IAS/IFRS [10-11; 13-17].…”

Section: Brief Literature Reviewmentioning

confidence: 90%

Implementation of international financial accounting standards from the perspective of companies in the Czech Republic

Vallišová¹,

Dvořáková²

2018

EA-XXI

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The paper presents the results of a qualitative and quantitative research in the area of implementation and use of International Financial Reporting Standards into accounting system in the conditions of corporate practice in the Czech Republic. The purpose of the research is to identify, analyse and evaluate the current state and development of the use of International Financial Reporting Standards and subsequently generalise the advantages and disadvantages of the application of the International Financial Reporting Standards system from the perspective of companies. To conduct a quantitative research, a questionnaire «IAS/IFRS application at legal entities and legal persons in the Czech Republic» was sent to Czech companies in 2015 and 2016. It was filled in and sent back by 228 respondents (63 large enterprises, 114 medium-sized enterprises and 52 small businesses). Based on the results of the empiric research, the authors proposed recommendations and measures for innovation and implementation development of the International Financial Reporting Standards system in the conditions of corporate practice in the Czech Republic with the aim to help to increase the quality, reliability and informative abilities of corporate accounting information for the users of financial statement information of financial accounting. Although most of the surveyed enterprises see the advantages of the IAS/IFRS system, very few use it. The main reason is that the tax base for the income tax in the Czech Republic comes from the accounting economic result determined by the Czech accounting regulations which are still not sufficiently compatible with the IAS/IFRS standards. Furthermore, the implementation of IAS/IFRS, compilation of IAS/IFRS reports and their regular audit are quite expensive, and the Czech companies are not obliged or motivated by the state to use them, except for the listed on the European stock exchange. The situation may change if the companies were allowed to apply the IAS/IFRS for tax and accounting purposes, as it is in a number of EU countries. However, it would demand essential changes in the legal provision of accounting and tax policies. The research topic is discussed in professional auditing and accounting chambers and institutions. The individual member states of the European Union, as well as the Czech Republic, are currently working intensively on the transposition of European Union Directive 2013/34/EU, 2014/95/EU and 2015/2366/EU into their national accounting legislation. The authors of the paper want to contribute to the successful adaptation of the International Financial Reporting Standards system into corporate practice by their research.

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Section: Brief Literature Reviewmentioning

confidence: 90%

Implementation of international financial accounting standards from the perspective of companies in the Czech Republic

Vallišová¹,

Dvořáková²

2018

EA-XXI

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“…The researchers observed that banks of Bahrain have a high level of compliance with IAS 21 standard. Alsaqqa and Sawan (2013) looked into the benefits gained and the challenges experienced by companies listed on the UAE stock market following the introduction of IFRS. They found that the benefits of adopting IFRSs in UAE inevitably far outweigh the difficulties and costs.…”

Section: Related Literature and Previous Studiesmentioning

confidence: 99%

“…As far as the GCC region is concerned, few studies used a questionnaire survey to examine the adoption of IFRS (see for example, Kuwait: Al Mutawaa and Hewaidy, 2010; Saudi Arabia: Alsuhaibania, 2012; Bahrain: Sarea and Al Nesuf, 2013; UAE: Alsaqqa and Sawan, 2013;Qatar: Mardini and Almujamed, 2015). The following section offers a brief review of these studies.…”

Section: Related Literature and Previous Studiesmentioning

confidence: 99%

Students' Attitudes towards the Adoption of International Financial Reporting Standards (IFRS) in Kuwait

AL‐Mutairi¹,

Naser²,

Alduwaila³

2017

ASS

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The purpose of this paper is to examine the perceptions of a sample of Kuwaiti students about their knowledge and interest on the adoption of International Financial Reporting Standards (IFRS) and the usefulness of learning IFRS. A questionnaire survey is used in this study to identify the attitudes of the students towards adoption IFRS in Kuwait. Questionnaires were distributed to 350 students who study in colleges of business administration in Kuwait. They were asked to express their perception about the adoption of IFRS. 228 questionnaires returned completed resulting in 65% usable response rate. The surveyed students gained knowledge about IFRS through their academic program. Most of the surveyed students knew nothing about IFRS before taking an accounting course that addresses the IFRS Standards. They became interested in learning more about IFRS after studying an accounting course. The surveyed students demonstrated that they acquired information about IFRS through formal academic lectures and the Internet. Yet, they prefer to study more about IFRS through formal lectures, practical case studies applied to Kuwaiti companies and seminars. There is consensus among the respondents that the business administration academic program must have more about IFRS offered as elective courses. Although Kuwait was one of the Middle Eastern countries that adopt IFAS, the vast majority of the students who took part in survey indicated that they were not aware of this. This gives clear indication that the financial reporting courses offered in business colleges in Kuwait are theoretical and hardly use the financial reports of companies listed on the national stock exchange as cases studies. The respondents believe studying IFRS helps in mastering accounting measurements and disclosure and this would help in proceeding in their studies and support them in developing their future career.

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“…The key challenges the banks reportedly encountered are the cost of adoption, need and access to training and education, difficulty in dealing with differences between local standards and IFRS, software problems. Alsaqqa & Sawan (2013) surveyed the perceptions of the Chief Financial Officers' (CFOs) for Dubai and Abu Dhabi listed companies, financial analysts of the financial statements in the two listed companies and their auditors. They reported that many respondents were concerned of the level of education of accounting users, the methods provided by some IFRSs, and inadequate enforcement mechanisms of the country.…”

Section: International Journal Of Accounting and Financial Reportingmentioning

confidence: 99%

“…Since IFRS is developed in the context of advanced countries, most of the requirements of IFRS are incompatible with the level of development of some developing countries. For instance developing countries may not have an active market for the establishment of fair values of assets and liabilities (Alsaqqa & Sawan, 2013). Most developing countries adopted IFRS without preparing the country environment for effective adoption of IFRS (Hussain, Islam, Gunasekaran, & Maskooki, 2002).…”

Section: Introductionmentioning

confidence: 99%

IFRS Adoption in Ghana: The Dimensions of Challenges Firms Encounter

Inusah

Dwommor

2017

ijafr

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The study seeks to identify challenges of IFRSs adoption firms encounter firms in the context of Ghana and the factors underlining these challenges. Structured questionnaire items were use to investigate the dimensionality of challenges firms encounter in a mandatory IFRS adoption situation using a sample of 88 finance officers of unlisted firms in Ashanti Region of Ghana. It is found that firms in Ghana do encounter some challenges in adopting IFRS. Notable among these challenges are correct application of IFRS, knowledge and expertise in IFRS, resistant to change, compatible software packages, integrating IFRS into existing systems and regulation enforcement. It is also found that the challenges of IFRS adoption in Ghana may be explained by five factors namely: IFRS Complexity, Knowledge and Expertise, Regulation, System and Processes, and Institutional Support. Cost could not be confirmed as a factor of IFRS adoption challenges, however, evidence suggest that cost as a challenge of IFRS adoption may be explained by the cost driver. It is therefore recommended that accounting education and training curricula in Ghana should be revised to reflect the changes in reporting standards and local accounting professional bodies should provide guidelines on the application of apparently difficult standards to local situations.

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The Advantages and the Challenges of Adopting IFRS into UAE Stock Market

Cited by 21 publications

References 58 publications

Implementation of international financial accounting standards from the perspective of companies in the Czech Republic

Implementation of international financial accounting standards from the perspective of companies in the Czech Republic

Students' Attitudes towards the Adoption of International Financial Reporting Standards (IFRS) in Kuwait

IFRS Adoption in Ghana: The Dimensions of Challenges Firms Encounter

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