Impact of adoption of international financial reporting Standards (IFRs) in preparation of quality financial Statements in beverage manufacturing industry: a case Of coca cola kwanza limited
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Mzumbe University
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Dissertation submitted to Mzumbe University in partial fulfillment of the
requirements for award of the Degree of Master of Science in Accounting and
Finance (MSc. A&F) of Mzumbe University
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.
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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financial Statements