IFRS ADOPTION AND QUALITY OF FINANCIAL REPORTS IN COMMERCIAL BANKS OF COMMERCIAL

Abstract

This study explored the effect of IFRS adoption on quality financial reports in DFCU bank. Therefore, among the major objectives to be explored in this study included assessing the effects of IFRS adoption on quality financial reports, investigating challenges faced by DFCU bank in the IFRS adoption as well as to evaluate the quality of financial reports after IFRS adoption in DFCU bank. The literature review is a means of acknowledging references from various sources in making this report. In the research study, a correlational research design was used and a quantitative approach of research design was adopted. Questionnaires were issued out to the different respondents that made up the study population. The target population of the study included employees from DFCU Bank, targeting 30 employees; using the Yamane formula, a sample size of 28 respondents was obtained. Of these, 21 actively participated in filling out the questionnaires that were given to them. A stratified random sampling technique was applied to obtain information that was unbiased and presented an accurate IFRS adoption and quality financial reports of the DFCU bank, while the data collected was to the best of the knowledge of the respondents as far as the two variables were concerned. It was found out that IFRS adoption improved significantly the transparency, comparability, and reliability of the financial reports. These include a number of significant challenges in the adoption process that pertain to the difficulty of IFRS standards, their high implementation costs, and the need for extensive training.