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Main Worldwide Cultural Obstacles on Adopting International Financial Reporting Standards (IFRS)

Author

Listed:
  • Abulkasem Dowa
  • Abdulmonem M. Elgammi
  • Abdesalam Elhatab
  • Hassan A. Mutat

Abstract

In recent times, the history of a country¡¯s culture has become increasingly recognised as a crucial factor in its accounting methods. The globalization of the practice of economics has lead to homogenous international standards which are at the core of its development for practitioners, researchers and academics. This research considered some factors that might influence the adoption of International Financial Reporting Standards (IFRS) as cultural obstacles. This study investigates the religion, the language, technical skill and expertise as main cultural obstacles for the adoption of IFRS worldwide. Findings revealed the incompatibility of many IFRS with principles of Islamic religion, and also many non- English countries apply wrong implementation of IFRS because of translation issues of IFRS from English to their local languages. This study concluded that it is difficult to adopt IFRS in some countries and for some institutions because of the insufficient technical skill and experience of accountants and auditors to deal with those standards.

Suggested Citation

  • Abulkasem Dowa & Abdulmonem M. Elgammi & Abdesalam Elhatab & Hassan A. Mutat, 2017. "Main Worldwide Cultural Obstacles on Adopting International Financial Reporting Standards (IFRS)," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(2), pages 172-179, February.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:2:p:172-179
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    References listed on IDEAS

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    1. Chamisa, Edward E., 2000. "The Relevance and Observance of the IASC Standards in Developing Countries and the Particular Case of Zimbabwe," The International Journal of Accounting, Elsevier, vol. 35(2), pages 267-286, July.
    2. Zeff, Stephen A., 2007. "Some obstacles to global financial reporting comparability and convergence at a high level of quality," The British Accounting Review, Elsevier, vol. 39(4), pages 290-302.
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    Cited by:

    1. Tlotlo Segotso & Jean Damascene Mvunabandi & Masibulele Phesa, 2024. "A Systematic Literature Review of the Challenges of Adopting and Implementing IFRS for SMEs in South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 14(5), pages 131-147, September.

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    More about this item

    Keywords

    culture; IFRS; religion; language; technical skill and expertise;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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