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.
International Journal of Accounting and Finance, 2015 Vol.5 No.1, pp.1 - 26
Accepted: 19 May 2014
Published online: 21 Feb 2015 *