IFRS Adoption in Ghana: The Dimensions of Challenges Firms Encounter

Nasiru Inusah, Joseph Yaw Dwommor


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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DOI: https://doi.org/10.5296/ijafr.v7i2.12028


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