FACTORS AFFECTING THE OPERATIONS OF IFRS PRACTICE IN ETHIOPIAN SHIPING & LOGISTICS SERVICE ENTERPRISE

Abstract

Arguments show that international financial reporting standard has many importance, but there are different challenges for the effective operations of IFRS. The main objective of this study was to examine the factors affecting the operations of IFRS in Ethiopian shipping & logistics service enterprise. To do so primary data collected through questionnaire and interviews by using randomly selected finance employees. The study employed both descriptive and econometrics method of analysis. The descriptive analysis revealed that IFRS has the benefit of improving efficiency and reliable of financial reporting, making external financing easier, provides transparency and effectiveness of internal audit, it provides better information for the investors, the information presented by IFRS is confidential. lack of guidelines for its implementation, Tax driven nature of previous standards, Lack of availability competent specialists, lack of training, Problem with IFRS’s use of fair value accounting are challenges of IFRS operation. The regression result revealed that company size, professional bodies accountancy, level of awareness about IFRS and availability of required skill have statistically positive significant effect on IFRS practice. Based on the results revealed it is recommended that developing training, assist necessary modification should be made in governing business and laws and developing awareness of international financial report standards.