The Readiness of International Financing Reporting Standard (IFRS) in Cambodia

Abstract

This study intends to examine the readiness of IFRS adoption and to explore IFRS adoption in Cambodia. This qualitative study started from reviewing the literature to formulate the interview questions and the interview questions were divided into two sections: questions related to the guidelines of IFRS adoption and questions related to IFRS readiness. The samples included deputies of associate of National Accounting Council (NAC), ACCA graduates and IFRS experts. The data were analyzed using summative content analysis.

The findings indicate that ACCA graduates’ and IFRS experts’ attitude toward the readiness of IFRS guideline adoption in terms of policy, plan and resources were in the range of 10-20% while that of the deputies of associate of National Accounting Council (NAC) was at 30%. The ACCA graduates and the IFRS experts saw unclear policy and plan together with that in Cambodia there was a lack of accounting institution producing accountants and accounting system. For the readiness of IFRS adoption, it needed organizations driving the process, team leaders, international market’s recognition, targeting, adoption timeline, and competency initiation. All three groups agreed that in Cambodia there was a lack of human resources especially licensed auditors and financial statement preparers because they are new to Cambodia and trainings are needed