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The purpose of this study was to find out the impact of adoption of International
Financial Reporting Standards (IFRSs) in preparation of quality financial statement
in beverage manufacturing firms, case study at Coca-Cola Kwanza (CCK) Ltd. The
general objective of the study was to examine impacts faced by Coca Cola Company
in adopting the IFRSs. The two specific objectives of the study were to identify the
challenges those have been facing the manufacturing firm in adopting IFRSs and to
determine measures to enhance adoption of IFRS in manufacturing firm. The study
comprised forty (40) participants of whom twenty (20) were head of
department/section from (Finance, Accounting, Procurement, Sales and marketing,
logistic), ten (10) Accountant and (10) Auditors. Data collection was done through
interview, questionnaires, discussions, observations and documentary analysis.
It was revealed from the study that there was positive effect in adopting IFRSs since
there were improvements at different areas of works, such as increment in staff
salary, accuracy in report writing, sales increased, investment increased and
increased the number of knowledgeable staff. The study observed that there were
challenges in adopting IFRSs although there were improvements in the firm. The
researcher identified challenges of adopting IFRSs because most of the respondents
showed that there were challenges in the adoption of IFRSs. From the total staff
surveyed 88% showed that there were challenges in adoption of IFRSs. These results
implied that the highest surveyed staffs face challenges on adopting the IFRSs. The
staffs that showed that there were challenges on the adoption of IFRSs and some of
those challenges were: the standards were not clearly understood by the staff
especially IAS 32 and IAS 39 about Financial Instruments. Some IFRS standards
were not applicable in the developing countries like Tanzania, keeping the speed of
changes of IFRSs was also a challenge on adoption of IFRSs and also the staff had
low technical capabilities in the application of the standards. The staff said that
before adopting any stage of IFRSs, the board must sit to decide in each step. For
example, the financial report of 2011 shows that the IFRS 9 and IFRS 13 should be
adopted by 2015 and 2013 respectively. |
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