Extent of compliance with international financial reporting standards (IFRSS) disclosures in developing country: evidence from Zambian listed companies
Martin Kabwe, Erastus Mwanaumo, Henry Chalu
There is a problem of non-compliance with IFRS disclosures and research is limited in developing countries especially in Africa. Therefore, this study examined the extent of compliance with IFRS disclosure requirements by Zambian listed companies. Data was collected from audited financial statements of 20 listed companies for the period 2012 to 2018. A self-constructed compliance checklist was used to score the compliance with IFRSs. Both the Dichotomous and Partial Compliance (PC) unweighted method were used to ascertain the level of compliance. Descriptive statistics were used to describe the extent of compliance. The study shows that IFRS compliance level using the dichotomous method and PC method is 65% and 56% respectively whereas standard deviation is 5% and 7% respectively. These results suggest that the compliance with IFRS disclosures is low among Zambian listed companies. The implication of these findings is that there is no adequate enforcement mechanism of compliance with IFRSs.