Assessment Of Corporate Governance Practice On Ifrs 7 Compliance: The Case Of Ethiopian Commercial Banks

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.