Abstract:
The objective of the study is to investigate the corporate governance practice on IFRS 7
compliance - a case of Ethiopian commercial banks. This study incorporates 10 banks as a
sample. Besides, 94 purposively selected IFRS department and only 90 respondents participated
on the study. Data were collected from sample respondents by using questionnaire and
interview. The method of data analysis of the study was content analysis with the help of the
IFRS 7 compliance checklist which was adopted from the previous studies. The study's findings
show that corporate governance has not satisfactory practice in the compliance of IFRS 7 in
Ethiopia. In addition, the regulatory body (AABE) supports and influence also not satisfactory to
persuade banks in IFRS7 compliance. The study suggested that the one department in the
national banks of Ethiopia could enforce and regulate the implementation of IFRS 7 in
commercial banks of Ethiopia. In addition, in the long run the Ethiopian accounting and finance
education system may revise as per the requirements of IFRS 7. Therefore, the national banks of
Ethiopia may enforce the commercial banks to encourage and enforce to use IFRS 7to work on
the compliance of IRFS 7 in Ethiopia.
