What is it about?
The study examines whether the adoption of International Financial Reporting Standards (IFRS) in Kenya improves the accounting quality of listed companies. This is based on the theory that the application of IFRS in preparing financial statements can result in transparency, accounting quality and reduced cost of capital as promised in the IFRS Framework.
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Why is it important?
Kenya is unique set up that adopted IFRS in the 1990s long before even the EU promulgated IFRS into law. The study represents a “natural experiment”, as opposed to the multi country studies in existence, it is a developing country regarded as having weak enforcement and systems and it is an under researched area.
Perspectives
This study creates a completely different perspective to IFRS research. As a developing country, there was hardly much published research on the impact of IFRS adoption in spite of them being the official reporting standards. Kenya adopted these standards through the Institute of Certified Public Accountants (ICPAK), and this study is a critical feedback comparing the effect of the standards in the pre and post adoption period.
Dr Erick R Outa
University of Cape Town
Read the Original
This page is a summary of: The Impact of International Financial Reporting Standards (IFRS) Adoption on the Accounting Quality of Listed Companies in Kenya, SSRN Electronic Journal, Elsevier,
DOI: 10.2139/ssrn.1976146.
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