A research report submitted
In partial fulfilment of the Degree: Master of Commerce
School of Accountancy
2015 / Using an exploratory interpretive research approach and IFRS 13 as a case study, this thesis
investigates the factors which affect the decision to adopt International Financial Reporting
Standards. Detailed interviews with a sample of some of South Africa’s preparers’ of
financial information and audit managers are used to gain an understanding of what factors
influence companies, other than those in the financial services sector, to adopt early IFRS 13.
The research findings are particularly significant as very little interpretive research has been
performed on financial reporting from a South African perspective. In addition, the research
performed to date has primarily considered the adoption of IFRS as a whole rather than a
particular standard within IFRS. In addition, the fact that IFRS 13 has only recently been
released offers an invaluable opportunity to study how current international accounting
developments are being internalised by South African corporates.
Through the interview process it was determined that the majority of the interviewees did not
elect to early adopt IFRS 13. As a result, the rationale of the decision to not early adopt IFRS
13 was discussed and explored. It was found that technical constraints - such as the need to
provide staff training and the requirement to provide additional accounting disclosure –
discouraged the early adoption of the standard. Factors such as the effect of adoption on
earnings, decisions made by competitors as well as the relevance of the standard to business
operations were also considered as part of this decision. Overall, the interviewees showed a
logic of resistance towards the standard and the standard setters which is manifested, not by
misapplication of the standard, but by dismissing its ability to provide more useful
information to users of financial statements and delaying its adoption.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/20182 |
| Date | 06 April 2016 |
| Creators | Swait, Nakita Jodie |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | application/pdf |
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