Accounting, FRQ, Emerging Countries Transition: How can a Country Implement an IFRS Standard Change Successfully?

Dr. Najeb Masoud

Authors

Dr. Najeb Masoud

Keywords:

international financial reporting standards (IFRS), financial reporting quality (FRQ), adopted/ nonadopted, implementation framework, emerging countri

Abstract

This study examines the variables affecting the decision to adopt IFRS standard by seventy-eight emerging market economy (43 adopting IFRS and 35 non-adopting) over the period 2006-2014. The results of the study are primarily an exploratory process framework for the implementation of IFRS standard changes and secondarily a set of variables seen as affecting the IFRS standard change implementation process in emerging countries. Key variables include the following twelve variables: culture (Anglo-Saxon), political system, educational system, legal environment, economic growth, privatisation, foreign direct investment, firm size, liquidity, and cost of equity capital, audit quality (Big 4) and transparency. Finally the main limitations of this study are outlined and opportunities for future research are discussed, particularly in relation to this study's findings about the requirement to reconsider the usefulness of the relationship between accounting practices and framework adoption of IFRS by emerging countries.

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Accounting, FRQ, Emerging Countries Transition: How can a Country Implement an IFRS Standard Change Successfully?. (2014). Global Journal of Management and Business Research, 14(15), 37-55. https://journalofbusiness.org/index.php/GJMBR/article/view/

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