Incorporating International Financial Reporting Standards (IFRS) into Accounting Curricula: Perceptions of Undergraduate Accounting Students in Saudi Universities

Ibrahim El-Sayed Ebaid

doi:10.47631/jareas.v2i2.216

Abstract

Purpose: The purpose of this study is to examine the perceptions of accounting students in Saudi Arabia on the extent of incorporating IFRS into accounting curricula in undergraduate accounting programs in Saudi universities after the mandatory implementation of IFRS in 2017. Approach/Methodology/Design: This study is cross-sectional and a questionnaire was used to collect data from accounting students in Saudi Arabia regarding the extent to which IFRS are incorporated into accounting curricula in undergraduate accounting programs in Saudi universities. The sample of the study included 132 accounting students from the largest and oldest three Saudi universities. The data was analyzed using descriptive statistics. Findings: The findings of the study revealed a weakness in students' awareness of IFRS due to the weakness in incorporating IFRS into the accounting curricula. The majority of students indicated that they do not have a separate course on IFRS, and if this course is included in the study plan, it is an elective course and not a required course. The textbooks that they study from in the university are old textbooks and therefore, do not include accounting treatments according to IFRS. Also, teachers do not mention the IFRS when explaining the topics included in the accounting courses. Practical Implications: The study has implications for Saudi universities. Based on the results of the study, Saudi universities should update curricula in undergraduate accounting programs so that IFRS are incorporated into accounting curricula. Accounting students will have careers where global transactions and interactions are common, so they need to be familiar with IFRS. The incorporation of IFRS into accounting curricula increases the ability of Saudi universities to provide graduates who can obtain job opportunities and succeed in the workplace after graduation. Originality/value: Accounting students are prospective accountants, so they should be aware of the IFRS they will use in preparing and auditing financial statements after graduation. Therefore, it is important to explore the universities' response to the adoption of IFRS by incorporating IFRS into the accounting curricula to provide a graduate who can implement these accounting standards after graduation.

Highlights

Financial reporting plays a major role in economic development at the national and international levels through its impact on ensuring strong investor confidence, which is vital for the optimal performance of financial markets and, for economic development
The globalization of financial markets at present has increased the speed of adoption of International Financial Reporting Standards (IFRS) as a unified set of accounting standards for measurement and reporting that are applicable on an international scale, as accounting information is one of the main sources for dealing and making decisions in these markets
Saudi Arabia began implementing IFRS at the beginning of January 2017.one major challenge encountered in the implementation process is the shortage of skilled accountants and auditors who are technically competent in implementing IFRS

Summary

Introduction

Financial reporting plays a major role in economic development at the national and international levels through its impact on ensuring strong investor confidence, which is vital for the optimal performance of financial markets and, for economic development. Carried into practice it in the curricula of their business schools These different accounting standards sets provide different accounting choices, applications of which, result in different financial reporting quality. As a result of this, the finance ministers of the Group of Seven industrialized countries issued a statement calling for the adoption and support of international accounting standards. In 2002, the European Union (EU) Parliament approved a regulation (Regulation 1606/2002) that mandates all companies registered in the EU stock markets to adopt International Financial Reporting Standards (IFRS) in preparing consolidated and stand-alone financial statements commencing after 1 January 2005. Okpala (2012) described IFRS as a global Generally Accepted Accounting Principles (GAAP), setting principles-based and globally accepted standards published by the IASB to facilitate preparation and presentation of high quality, transparent and comparable financial statements The globalization of financial markets at the present time has increased the need for a unified set of accounting standards for measurement and reporting that are applicable on an international scale, as accounting information is one of the main sources for dealing and making decisions in these markets (Surianti &Yadiati, 2017). Okpala (2012) described IFRS as a global Generally Accepted Accounting Principles (GAAP), setting principles-based and globally accepted standards published by the IASB to facilitate preparation and presentation of high quality, transparent and comparable financial statements

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