会計とマーケティング

The Effect Of IFRS Adoption on Financial Analysis Practice: Evidence From Private Commercial Banks in Ethiopia

Abstract

Edilawit Gebregiorgies*

This study aimed at examine the effect IFRS adoption on financial analysis practices of private commercial banks in Ethiopia using quantitative research approach based on financial information’s and figures collected from 16 private commercial banks annual audited reports. The data were collected and summarized in excels, test and analyzed in SPSS. Figures and ratios were tested and analyzed through descriptive statistics, test of equality of means, median and variances. The descriptive statistics result indicates most of the range of values is larger in IFRS compared to that in GAAP. IFRS adoption does not change significantly, at the aggregate level. Some financial statement figures decreased and others increase after the transition. The study suggests that various adjustments affect the differences between financial statement figures and ratios in IFRS and GAAP. It may be sensible to rely on cash flows to avoid the subjectivity inherent to accounting adjustments. Since IFRS adoption is new to Ethiopia, the impact of IFRS on financial statement figures and financial analysis needs further studies by taking more trend data in the future.