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School of Business | Department of Accounting | Accounting | 2011
Thesis number: 12578
An exploratory framework for implementing IFRS standard changes: Case Financial Statement Presentation
Author: Tammenpää, Tiina
Title: An exploratory framework for implementing IFRS standard changes: Case Financial Statement Presentation
Year: 2011  Language: eng
Department: Department of Accounting
Academic subject: Accounting
Index terms: laskentatoimi; accounting; standardit; standards; muutos; change; prosessit; processes; mallit; models
Pages: 126
Full text:
» hse_ethesis_12578.pdf pdf  size:651 KB (666502)
Key terms: IFRS; IAS 1; IAS 7; implementation process framework; contextual variable; organizational variable; exploratory case study; Financial Statement Presentation
Purpose of the Study

The purpose of the study is to research how a company should implement changes in International Financial Reporting Standards after the initial or “first-time” adoption of the accounting standards as a basis for financial reporting has already been completed. The focus of the paper is on developing an exploratory process framework for implementing IFRS standard changes in large companies already reporting under IFRS. In addition, contextual and organizational variables that have an effect on the success of the implementation process are identified through the contingent setting of a case standard change example.

IFRS standards are increasingly widespread as a basis for the accounting system of companies across the world. Their adoption has been mandatory for EU-based listed companies since 2005. At the same time, the standards themselves are evolving rapidly through a convergence project with US GAAP, the US local accounting standards, and other macro environmental changes. As producers of external reporting information firms reporting under IFRS must follow the standard changes closely, and implement them to existing processes to ensure compliance in their financial statements.

Method and Data Collection

As the topic of implementing changes to IFRS standards as a process has not been researched specifically, the study is conducted in an exploratory case study format with the purpose to find areas worthy of further study. The research synthesizes a theoretical implementation process framework and variables affecting the success of the process from existing literature and develops them through semi-structured theme interviews with one case company and several IFRS experts.


The results of the study are primarily an exploratory process framework for the implementation of IFRS standard changes and secondarily a set of variables seen as affecting the IFRS standard change implementation process. Key variables include the following nine variables: top management commitment, peer group contact, documentation level, training, amount of resources,the amount of time a company has reported under IFRS, the time reserved for the implementation process and the clarity of both communications and objectives of the change. The exploratory results provide a first step for further research into IFRS standard changes and their implementation.
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