Abstract:
The overall objective of this study is to assess the determinant factors and challenges of the
adoption of International Financial Reporting Standard (IFRS) in Ethiopian Construction
Works Corporation (ECWC). To ansewr the research questions and tests the hypotheses the
study adopted the mixed research approach. In order to select samples of the study, the
researcher was used simple random sampling method because it helped to generalize from a
sample to a population so that inferences could be made. Both primary and secondary data
were collected using questionnaires, interview and document analysis. The quantitative data
were analyzed using descriptive statistics, correlations, and multiple linear regression
analysis.To do this analysis, the researcher was applied Statistical Package for the Social
Scientists (SPSS) soft ware. The qualitative data collected from open-ended items in the
questionnaires, document reviews and interviews were interpreted qualitatively. The
correlation results of the study indicated that IFRS adoption has a significant relationship
with IFRS knowledge gap, resistance to change, company size and organizational policy.
The study finds that with the exception of organizational policy, the other three variables
which are IFRS knowledge gap, resistance to change and company size has a significant
relationship with the IFRS adoption company (ECWC). Hence, there is a need to consider
and recognize these factors and make a difference in ECWC for IFRS adoption could be
effectively implemented.
