Abstract
International Financial Reporting Standards, commonly known as IFRSs, are uniform accounting standards issued by the International Accounting Standards Board (IASB) in 2001. The Saudi Organization for Certified Public Accountants (SOCPA) from 1st Jan 2016 has announced its decision to converge their National Accounting Standard with IFRS. The standards will surely be going to influence the financial system of the country. Every country has its own Generally Accepted Accounting Principles (GAAP). However, an understanding is needed to evaluate the adoption and awareness of IFRS among students and academicians in Saudi Arabia. The present study attempted to examine the awareness and interest of students concerning IFRS. This study has brought some hard facts regarding IFRS convergence in Saudi Arabia. The IFRS will only be able to yield fruitful results when all stakeholders are fully aware, interested, taken into confidence, and ready to cooperate with the directives of the Saudi Organization for Certified Public Accountants (SOCPA) for IFRS adaption.
Highlights
The International Accounting Standards (IAS) is an older accounting standard
The current study has unearthed many interesting things related to International Financial Reporting Standard (IFRS) in Saudi Arabia
The study highlighted a pressing need for IFRS to be introduced in accounting curriculum as around almost 70 % respondents found to be unaware of IFRS.Secondly, going further to the process of the financial statement, additional in respect to the analysis of the financial statement the primary value was found to be 3.5926 and the standard deviation as 1.05304, which indicates that the students have the perception that by learning of IFRS content it will help in gaining the knowledge and skills for the analysis of the financial statement in the practical sense
Summary
From 1973 to 2001, International Accounting Standard Committee (IASC) published, International Accounting standard (IAS). In the year 2001 IAS has been replaced by International Financial Reporting Standard (IFRS), and the International Accounting standard Board has started publishing IFRS, which contains a total IFRS 16 standard. A need has been felt to have refined and unified accounting standards of reporting its financial statements, which would have acceptability and applicability across the boundaries. In this backdrop, IFRS has been envisaged by International Accounting Standard to panaceas for multinational Corporations' financial reporting problems (MNCs). Ever Since the Introduction of IFRS by International Accounting standard Board (IASB), many countries started adopting IFRS in total.
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