International Financial Reporting Standards (IFRS) Adoption in Africa: Does Cultural Affinity to Europe Play a Part?
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One of the essential ingredients of accounting
information is ease in understanding and interpreting
financial reports. Globalization and capital flows
across borders require uniformity in accounting
standards for the purpose of ease in understanding
and interpretation of financial reports globally. To
achieve this, the International Accounting Standards
Board (IASB) in 2005 introduced the International
Financial Reporting Standards (IFRS) as an
accounting product and expects all countries in the
world to adopt it. Interestingly, some countries are yet to adopt it
despite the expected benefits from its adoption. A
study by Simon Fraser University (2011) has reported
that only 54 per cent of Mrican countries have
adopted IFRS. Literature on why countries adopt IFRS
focuses on many variables such as the country's
cultural affinity to Europe offering the IFRS product
(Ramanna and Sletten, 2009; Farooque, Yarram, and
Khandaker, 2009; Epstein, 2009; Beneish, Miller, and
Yohn, 2010; and Chen, Ding, and Xu, 2011).
Keywords
HF5601 Accounting