International Accounting Standards (Ias / Ifrs) Adoption and Quality of Financial Reports of Manufacturing Companies in Uganda a Case Study: Nile Breweries Limited

Abstract

This study is on international Accounting standards (IAS/IRFS) adoption and quality of financial reports of manufacturing companies in Ugandan adoption of IAS manager is confronted with industrial changes both in structures and process of financial reporting. Previous surveys / students improve the quality of financial reports. This study evaluated the assertion that IAS/IFRS adoption affects the quality of financial reports.

Data was collected via a stratified sampling of 50 respondents who completed a 5 point like scale, which has long history of reliability and usage in social science research.

This study adopted a documentary review of financial reports before and after IAS/IFRS adoptions to evaluate how IAS/IFRS adoption affected quality of financial reports.

Logistic regression was used to test IAS/IFRS adoption as independent variable to predict quality of financial reports as outcome variable. The study found statistically significant Improvement in the quality of financial reports following IAS/IFRS adoption.

Literature was reviewed on IAS/IFRS adoption and quality of financial reports and then narrowed down objective by objective in order to appreciate the work of other authors in the study areas and discover if there are gaps.

The specific objective of the study included

i. To find out how IAS/IFRS affects quality of financial reports of manufacturing companies in Uganda

ii. To find out how IAS/IFRS adoption affects timeliness of financial reports of manufacturing companies in Uganda

iii. To find out how IAS/IFRS adoption affects relevance of financial reports of manufacturing companies in Uganda

iv. To find out how IAS /IFRS adoption affects completeness of financial reports of manufacturing companies in Uganda

In methodology chapter, a case study design was used with both qualitative and quantitative approaches of data collection. Proportionate stratified sampling and later systematic sampling techniques were used to select 50 respondents (subject to a non-response rate of 10%) Questionnaire method was used in a structured self -administered questionnaire was used as a tool to collect data. The findings were analyzed using SPSS and Microsoft excel spreadsheet IAS/IFRS where a positive correlation was established between IAS/IFRS adoption and quality of financial reports the dependent variable.

Key recommendations have been made in this research if implemented, could help address the existing gap in the quality of financial reports. In adoption major areas for future research have been proposed which other researchers can consider to conduct research in

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