Int. J. of Accounting and Finance   »   2015 Vol.5, No.1

 

 

Title: Adoption of IFRS by listed companies in Qatar: challenges and solutions

 

Authors: Ebtesam S. Al-Mannai; Nitham M. Hindi

 

Addresses:
Finance Affairs Department, Qatar Investment Authority, Qatar
College of Business and Economics, Qatar University, P.O. Box 2713 Doha, Qatar

 

Abstract: The importance of adopting International Financial Reporting Standards (IFRS) has been increasing owing to the fact that companies and businesses are conducting their operations outside their national boundaries and becoming more global. This study investigates the extent of adopting IFRS by the 44 listed companies in Qatar Exchange. In addition, it examines the challenges that are experienced by these companies in the process of adopting and implementing these standards. Furthermore, this study found the four main challenges in the adoption process in Qatar are level of education, professional skills of the staff, requirement of external support (such as the involvement of external auditors and professional consultants), and the increased judgement that may lead to manipulations. The study recommends that in order to have a better monitoring of adopting IFRS in Qatar, laws should mandate the adoption of IFRS and a central body should enforce the adoption of IFRS by companies.

 

Keywords: International Financial Reporting Standards; IFRS adoption; accounting standards; challenges; Gulf Cooperation Council; GCC; Qatar; education levels; professional skills; external support; external auditors; professional consultants; increased judgement.

 

DOI: 10.1504/IJAF.2015.067683

 

Int. J. of Accounting and Finance, 2015 Vol.5, No.1, pp.1 - 26

 

Date of acceptance: 19 May 2014
Available online: 21 Feb 2015

 

 

Editors Full text accessAccess for SubscribersPurchase this articleComment on this article