The Challenges Faced by Reporting Entities on Their Transition to International Financial Reporting Standards: A Qualitative Study

Abstract

This study explores the challenges of implementing International Financial Reporting Standards (IFRS) at the organisational level. Based on interviews with experts with aggregated experience relating to the transition projects of over 170 reporting entities, this paper highlights the main challenges in delivering a successful implementation of IFRS. The findings show that the problems faced in implementation include lack of education and training, securing executive level support, identifying and responding to the wider business-related implications of the transition, and issues with capturing the necessary information for reporting under IFRS. This paper complements the existing literature and offers a qualitative alternative to considering the transition to IFRS, offering insight into the organisational context of IFRS implementation. These insights are useful not only from a historic perspective, but also for organisations and regulators in the many jurisdictions where IFRS is permitted but not required, where more reporting entities will voluntarily move to IFRS based reporting in the future. More broadly, they are also applicable to the challenges faced in implementing new and significantly revised IFRSs.

Influence of transnational economic alliances on the IFRS convergence decision in India—Institutional perspectives

“…However, studies exploring the influences of such alliances in shaping convergence decisions in developing countries are limited (Mir & Rahman, 2005). Since a large number of countries that have converged with IFRS are developing countries (IFRS, 2017), exploring the role of these influences on convergence decisions in these countries would add to our understanding of the on-going accounting convergence drive and the different outcomes of such convergence (Weaver & Woods ,2015;Ghio & Verona, 2015;Sharma, Joshi & Kansal, 2017).…”

Challenges and Barriers in Convergence of IND_AS with IFRS: A Perspective Investigation on Indian Professionals and Officials

“…The Literature on IFRS available globally spotlighted the reasons, effects of experience, practical diversity, and the challenges of IFRS implementation. As stated above, the variables that render execution uncertain are also identified by researchers (Weaver, Lisa, and Woods, Margaret., 2015) when they noted that while a variety of aspects on worldwide accounting harmonization are discussed in the current literature, application problems such as execution costs, consciousness, preparation and IT are also need to be addressed.…”

“…However, due to intuitive stress, many of these countries react to IFRS implementation (Phan, D., Joshi, M., & Mascitelli, B., 2016) (Sharma, S., Joshi, M., & Yapa, P., 2016) (Mir, Monir, & Shiraz Rahaman, Abu., 2005). Research involvement in IFRS has shifted from The last century has seen sporadic attempts to recognize the difficulties of implementing IFRS in terms of interaction, translation and analysis of IASB norms and to comprehend the difficulties experienced by officials and professionals in terms of education, staffing, costs, preparation and IT facilities (Jermakowicz, Eva, & Gornik-Tomaszewski, Sylwia., 2006) (Jones, Stewart, and D., Higgins, Alison., 2006) (Weaver, Lisa, and Woods, Margaret., 2015) (I. Ocheni, S., 2015).…”

Ind-AS Enforcement in India: An Assessment of Readiness, Benefits and Key Challenges

“…The factors for adoption of IFRS are evidenced and highlighted by many researchers, Barth et al (2012), Cascino and Gassen (2014), Jeanjean and Stolowy (2008), Jones andFinley (2011), Lang et al (2010), Schleicher et al (2010) and Shil et al (2009) conducted studies and reported reasons such as effect of experience, diversity in implementation and practice, complexity and adoption pitfalls as few factors impacting IFRS enforcement. Weaver and Woods (2015) also indicated that though a plethora of literature is available on the topic of international accounting harmonization, issues associated with implementation, such as the adoption cost, better understanding, training and IT, also require attention.…”