Brief Introduction

In the past few years, many developed and developing countries have adopted international financial Reporting Standards (IFRS) as the basis for financial reporting. This is because the globalization of the capital market is an irreversible process, and there are many potential benefits to be gained from mutually recognized and prospected international accounting standards.

The move towards developing an acceptable global high-quality financial reporting standard started in 1973 when the International Accounting standards committee (IASC) was formed by professional Accounting bodies from Canada, the USA, the United Kingdom, Germany, France, Netherland, Australia, Mexico, and Japan.

The IASC was to formulate uniform and global accountings aimed at reducing the discrepancies in International Accounting principles and reporting practices. In this light, the IASC was established and has actively been championing the uniformity and standardization of accounting principles for the past few years. In April 2001, the IASC was reorganized into International Accounting standard Board (IASB).

Thenceforth, the IASB has updated the already existing International Accounting Standards and referred to them as International Financial Reporting Standards (IFRS). IFRSs are a single set of high-quality understandable standards for the general purpose of financial reporting which are principles-based in contrast to the rules-based approach.

Table of Content

TABLE OF CONTENT
Title page……………………………………………………………………………….……i
Certification…………………………………………………………………………….……ii
Dedication …………………………………………………………………………….…….iii
Acknowledgment…………………………………………………………………….…….iv
Abstract ……………………………………………………………………………….……..vi

CHAPTER ONE
INTRODUCTION
1.1 Background of the study ………………………………………………………………….1
1.2 Statement of the problems ……………………………………………………………… .2
1.3 Objectives of the study…………………………………………………………………….3
1.4 Research Questions ………………………………………………………………………3
1.5 Research Hypotheses……………………………………………………………………..4
1.6 The scope of the study……………………………………………………………………4
1.7 Justification for the study…………………………………………………………………4
1.8 Outline of the study……………………………………………………………………….5
1.9 Definition of term …………………………………………………………………………6
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction……………………………………………………….………………7
2.2 Conceptual Framework ……………………………………………………………7
2.3 Theoretical Background………………………………………………………….22
2.4 Empirical Review…………………………………………………………………24
2.5 Summary……………………………………………………………………….….27
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction………………………………………………………………………28
3.2 Research Design………………………………………………………………….28
3.3 Population and Sampling Techniques…………………………………………….28
3.4 Method of Data Collection……………………………………………………….29
3.5 Method of data Analysis…………………………………………………………29
3.6Decision Rule…………………………………………………………………….30
CHAPTER FOUR
DATA PRESENTETION AND ANALYSIS
4.1 Introduction………………………………………………………………………31
4.2 Presentation and Analysis………………………………………………………..31
4.3 testing of hypotheses……………………………………………………………..47
4.4 Discussion of results………………………………………………………………48

CHAPTER FIVE
SUMMARY, CONCLUSION,AND RECOMMENDATIONS
5.1Introduction……………………………………………………………………..50
5.2 Summary of Findings………………………………………………………..…50
5.3 Conclusion…..………………………………………………………………….51
5.4 Recommendations………………………………………………………………52
5.5 Limitations of the Study……………………………………………………….55
5.6 Suggested Areas for Further Research…………………………………………56
References…………………………………………………………………………57
Appendix…………………………………………………………………………..60