A RESEARCH SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF ABACHLER DEGREE IN ACCOUNTING AND FINANCE

Abstract

This study focuses on the adoption of international financial reporting standard(IFRS). Key challenges of in ethio telecom. The study uses both primary and secondary data. Primary data were collected through questionnaire and secondary data were collected from reference books and internet source. IFRS adopted officially in December 2014 & the main objective of IFRS is to coverage the diverse business language being used by business communities all over the world. Finally, the study displayed practical implication for government of Ethiopia & Ethio telecom to use proper application of all adopted standard also the study suggests that rigorous IFRS capacity building program should be embarked by the government &company also for training institution in order to provide the needed man power for lFRS implementation. Finding of the study High Implementation Cost 60% strongly agreed and 40% agreed that IFRS adoption is costly. Expensive consulting fees,Lack of qualified personnel for IFRS implementation ,Absence of a structured market for fair value measurements. High training costs .Complexity of Financial Reporting 80% agreed and 20% strongly agreed that IFRS increases reporting complexity. Reasons: Continuous updates to IFRS standards. Principle-based nature (vs. rule-based GAAP). Extensive disclosure requirements. Lack of familiarity with IFRS among professionals. Lack of Implementation Guidance 80% agreed and 20% strongly agreed that insufficient guidance hinders adoption. Challenges include: Absence of clear instructions from regulatory bodies. Risk of inconsistent interpretations. Volatility in Earnings :40% agreed, 20% strongly agreed, and 20% disagreed that IFRS increases earnings volatility. Reasons: Fair value accounting (vs. historical cost).Economic instability in Ethiopia (e.g., fluctuating interest rates. Fair Value Accounting Issues :80% strongly agreed that fair value measurement is problematic Lack of observable market data :No reliable valuation experts in Ethiopia. IT System Limitations :60% agreed that existing IT systems struggle with IFRS transition.