The adoption and implementation of International Financial Reporting Standards (IFRS) in Rwanda

(1)

Doctoral Thesis

The Adoption and Implementation of

International Financial Reporting

Standards (IFRS) in Rwanda

An Integrated Approach

Jean Bosco Shema

Jönköping University

Jönköping International Business School JIBS Dissertation Series No. 129, 2018

(2)

2

Doctoral Thesis in Business Administration

The Adoption and Implementation of International Financial Reporting Standards (IFRS) in Rwanda: An Integrated Approach

JIBS Dissertation Series No. 129

Jönköping International Business School P.O. Box 1026

SE-551 11 Jönköping Tel.: +46 36 10 10 00 www.ju.se

Printed by Brand Factory AB 2018 ISSN 1403-0470

(3)

Acknowledgements

“It always seems impossible until it is done” Nelson Mandela

After a painstaking journey of almost 5 years, the hope of achieving my PhD studies is dawning. It is with the dedication and assistance of many people and institutions without which this dream of mine could not have been attained. It is therefore my great pleasure to express my heartfelt acknowledgements to all people and institutions who contributed to this noble achievement.

First and foremost, I extend my sincere appreciations to all my supervisors for their respective contributions. I extend my sincere gratitude to Prof. Gunnar Rimmel, my main supervisor, for his scientific and moral supports. He played his role as an academician and as a human being in providing scientific, social and psychological encouragements necessary to this great achievement. I sincerely thank Prof. Andreas Stephan for his availability in time of need and mostly his scientific contributions. I convey my heartfelt thanks to Dr. Musafiri Malimba Papias for his scientific contribution, especially regarding the Rwandan context and encouragements to the success of this research enterprise.

My sincere gratitude goes to the Government of Rwanda and to the Swedish Government for their cooperation that have made the PhD training program a reality. Especially I extend my appreciation first to the University of Rwanda for having selected me in the program and for the provision of all academic and administrative supports that facilitated this great success. I think particularly to the dedication and commitment of the UR-Sweden Program staff. It is with honor and gratitude that in return I pledge to serve University of Rwanda. Second, I convey my heartily acknowledgements to Jönköping University that safely sailed my PhD journey towards the destination. My thanking goes to all professors and administrative staff for their full and committed support.

My heartfelt gratitude goes to my family for their abnegation and patience for my long absence at their side. First, I express my warm gratitude to my dear wife Vérène Nyirazaninka for her endless moral presence towards the PhD journey. My appreciations go as well to my daughters and sons, brothers and sisters for having accepted my lingering absence. I could not omit to thank my father and mother from whom my existence was made possible, for their education, for their instruction all along my life’s journey. I pay a special tribute to my mother who passed away 4 months after this journey started. Your patience and your privations had been a stepping stone towards this important attainment.

Finally, I dedicate this achievement to my colleagues with whom I shared the same journey. Their scientific discussions and encouragements, their jokes and funs around this uphill and time-consuming PhD task were of great contribution. Jönköping, December 2018

(4)

(5)

Abstract

Accounting has played a significant role in globalization through instruments like the International Accounting Standard Board (IASB), the International Federation of Accountants (IFAC) and the International Financial Reporting Standards (IFRS) which have harmonized global business practices. With the spread of globalization, the persistence of local realities has become a global issue. While IFRS has been adopted across the world, local contexts are impeding its smooth implementation.

This study investigates this phenomenon in the Rwandan context by discussing how IFRS has been adopted in Rwanda and extends to in sub-Saharan African countries for the quantitative part of the study. In Rwanda, IFRS’ adoption was influenced by the country’s economic context (dire need for reconstruction), social context (Rwandans with different accounting traditions due to the conflict and the movement of people across the region and in the world and their returning to their home country) and the political context (colonial legacy and accounting initiatives of the independent African countries and Rwanda’s regional and international integration policies). Findings suggest that the adoption of IFRS was done after intense preparations and its implementation was monitored as it was believed that these standards would catalyze the government’s economic development goals. The findings also show the bi-directional relationship between accounting and the environment in which it operates. While IRFS’ adoption was swayed by the prevailing environment these standards also formed a part of the country’s strategy for economic development and a mechanism for promoting equity among its citizens.

Findings also show that professionalization of accounting was context bound and was influenced by the accounting environment in Rwanda. Further, professionalization in Rwanda contributed to conflict prevention and resolution among accounting practitioners. The study also shows that the government played a big role in the development of accounting as a profession with future objectives of putting in place a self-sustainable profession. This led us to the concept of transitional corporatism besides state and liberal corporatism existing in the literature. Finally, our findings did not find an improvmnet of accounting quality in commercial banks using IFRS and those using OHADA. The main reasons behind are to be associated with the enabling conditions of IFRS implementation and lack of consistent reforms to OHADA standards.

(6)

(7)

List of Content

1. A synopsis of the dissertation ... 11

1.1 Introduction ... 11

1.2 Background ... 14

1.2.1 History of accounting in Rwanda ... 14

1.2.2 The role of the government in planning the adoption and implementation of IFRS in Rwanda ... 15

1.2.3 Development of the accounting profession in Rwanda ... 17

1.2.4 Comparison of IFRS and OHADA’s accounting quality ... 18

1.3 An overview of the research design ... 19

1.3.1 Mixed-methods approach ... 19

1.3.2 The qualitative approach ... 20

1.3.3 Quantitative approach ... 21

1.4 Summary of papers ... 24

1.4.1 The history of accounting in Rwanda ... 24

1.4.2 The government’s role in planning IFRS’ adoption and implementation in Rwanda ... 25

1.4.3 Development of the accounting profession in Rwanda ... 25

1.4.4 Comparison of IFRS and OHADA’s accounting quality ... 26

References ... 27

Collection of papers: Paper 1: The history of accounting in Rwanda ... 38

1.2 The ideology of accounting history: A brief review ... 40

1.3 Research design ... 44

1.3.1 Research design ... 44

1.3.2 Data sources and data collection techniques... 44

1.3.3 Data analysis ... 46

1.4 Rwandan accounting history: From a colonial legacy to the adoption of IFRS ... 46

(8)

8

1.4.1 Rwanda’s profile ... 46

1.4.2 Accounting in Rwanda: The colonial legacy ... 48

1.4.3 The birth and disintegration of accounting initiatives at the continental level and in regional African blocs ... 49

1.4.4 Recent developments in Rwanda: The advent of IFRS ... 51

1.5 Conclusion ... 59

References ... 61

Paper 2: The role of the governments in IFRS’ adoption and implementation: The case of Rwanda ... 66

2.2 Literature review ... 68

2.3.1 Data source and collection techniques ... 71

2.4 Research findings ... 75

2.4.1 Choosing IFRS as the accounting reporting standards in Rwanda ... 75

2.4.2 Sense-making of IFRS’ adoption and implementation environment ... 77

2.4.3 IFRS’ implementation enablers ... 79

2.5 Discussion and conclusion ... 86

References ... 88

Paper 3: Development of the accounting profession in Rwanda ... 94

3.2. Literature Review ... 96

3.2.1 Theoretical perspectives on professionalization ... 96

3.2.2 Review of literature on accounting professionalization ... 99

3.3. Research design ... 101

3.3.1 Research design ... 101

3.3.2 Data sources and data collection techniques ... 102

3.3.4 Context of accounting professionalization in Rwanda ... 104

(9)

3.4.1 Motives for accounting professionalization in Rwanda ... 106

3.4.2 The process of accounting professionalization in Rwanda ... 111

3.4.3 Professionalization and professionalism in Rwanda: Key stakeholders ... 115

3.4.4 Professionalism in Rwanda ... 116

References ... 119

Paper 4: IFRS and OHADA’s accounting quality: A comparison ... 126

4.2 Literature review ... 128

4.2.1 An overview of IFRS and OHADA accounting standards ... 128

4.2.2 A brief discussion on accounting quality ... 130

4.2.3 The determinants of accounting quality ... 131

4.2.4 Accounting quality measurement ... 131

4.2.5 Literature and the development of hypotheses ... 132

4.3.1 Data and sample selection ... 135

4.3.2 Measuring the variables ... 135

4.3.3 Descriptive statistics ... 138

4.4 Research findings ... 140

4.1.1 Empirical strategy ... 140

4.1.2 Empirical findings ... 141

References ... 149

(10)

(11)

1. A synopsis of the dissertation

1.1 Introduction

This thesis adopts a processual approach to investigate the adoption and implementation of the International Financial Reporting Standards (IFRS) in Rwanda. Following Pettigrew (1997), it collates different critical events to understand their dynamics in this process. Further, recent trends in accounting research consider context as a significant aspect that integrates accounting in its environment (Gomes, 2008; Willmott, 1986). Such a study requires different strategies for a thorough understanding of IFRS’ adoption and implementation.

To achieve its objectives this research also follows the mixed-methods approach. According to Tashakkori and Teddie, (2008) studies that adopt a pragmatist paradigm and both qualitative and quantitative approaches can be joined across the different stages of the research. While the first three papers in this dissertation discuss the adoption of IFRS following a qualitative approach, the last paper follows a quantitative approach to get insights into IFRS’ implementation at the firm level. In particular, the last paper enquiries about IFRS’ accounting quality as compared to local standards in force in West African countries. Rwanda used local accounting standards before shifting to IFRS.

The advent and spread of globalization have revolutionized business practices across the world. In a globalized era, technological innovations have eased exchanges and there is more fluidity in information sharing which has removed geographical distances. Such a globalized situation requires soft infrastructure to bring harmony in business practices. Hence, institutions and standards were put in place to facilitate business practices across the world including the setting up of the International Accounting Standards Board (IASB) and the International Financial Reporting Standards (IFRS). IFRS, which are at the center of my study, have received the attention of researchers at the country and firm levels. My research focuses on both these levels. Among the many aspects of IFRS’ adoption and implementation (Alona, 2014; Camelia et al., 2017; Pricope, 2016; Ramanna et al., 2014; Stainbank, 2014; Zehria and Chouaibi, 2013) are also the challenges in adopting IFRS (Burgstahler et al., 2006; Daske et al., 2008).

My study aims to understand the adoption and implementation of IFRS in Rwanda through a process perspective which captures critical events that have marked this journey. In addition, I also investigate IFRS’ implementation in sub-Saharan Africa to reflect on the outcomes of IFRS’ implementation and most importantly to inform the process of its adoption by discussing the advantages of such a process and also the challenges that have to be faced.

The thesis comprises of four complementary papers: The history of accounting in Rwanda, the government’s role in IFRS’ adoption and implementation,

(12)

Jönköping International Business School

12

development of the accounting profession in Rwanda and the differences in the accounting quality of IFRS and OHADA (Organization for Harmonization of Business in Africa) which are enforced mostly in the French-speaking sub-Saharan African countries.

These papers are interwoven together as: Paper 1 presents the history of accounting in Rwanda which forms the background for the three other papers. According to Munslow (2007) researchers need to have an ontological and epistemological link between past existence and present knowledge. Understanding the development of accounting in Rwanda contributed to clarifying the scope of the remaining papers in my thesis as it explained the available options like maintaining local standards and moving to IFRS. Further, the history of accounting in Rwanda showed lack of previous accounting institutions and helped understand the conflicts in accounting traditions among practitioners. Paper 1 also discusses the accounting traditions that Rwanda went through till it adopted IFRS. Incidentally, Rwanda was the last country to use the French-German accounting plan OCAM as adopted by French-speaking countries in Africa. Paper 2, which discusses the role of the Government of Rwanda (GoR) in planning IFRS’ adoption and implementation has linkages to Papers 3 and 4 in addition to contributing to the history of accounting in Rwanda. The paper shows that planning IFRS’ adoption needed organized professionals without which the implementation of freshly adopted standards would have been compromised (Odia and Ogiedu, 2013). Planning the adoption and implementation of IFRS in Rwanda also raised the need for enablers for effective implementation at the firm level. Paper 3 discusses the development of the accounting profession in Rwanda in implementing IFRS. The accounting profession needs the harmonization of accounting practices and the regulations of professionals for better delivery of quality information which is the ultimate objective of IFRS’ implementation.

Paper 4 informs Papers 2 and 3 as it discusses how accounting standards and institutions are enforced and their outcomes in terms of expected accounting quality. It also provides policy implications and highlights some challenges encountered during the process; hence, it also gives some suggestions for meeting these challenges (Figure 1).

(13)

The Adoption and Implementation of International Financial Reporting Standards (IFRS) in Rwanda

Figure 1: The complementarity between the research papers

History of accounting in Rwanda shows the plan for

adoption and development of the profession and the implementation of IFRS

and in turn it is perpetuated by the them.

Planning IFRS Adoption and Implementation revealed the need for an accounting profession and enablers for its

implementation

Development of the accounting profession as contingent for IFRS’ implementation and regulation for accounting practices

and practitioners

Quality of accounting it’s through implementation reflects both the quality of the plan for IFRS adoption

and the profession which is the watchdog in its implementation

(14)

14

1.2 Background

1.2.1 History of accounting in Rwanda

The history of accounting in Rwanda has influenced its current accounting institutions and practices. IFRS’ adoption and implementation brought an upheaval to accounting practices and institutions as Rwanda moved from a French-German to an Anglo-Saxon accounting tradition. This not only meant a change from the technical perspective of accounting but also changes in the social, legal and economical settings. Ha-Joon (2005) argues that such a change may have far-reaching implications. That is why planning IFRS’ adoption may help reduce the negative impact of adopting new and unfamiliar accounting standards. The context of accounting in Rwanda is complex and understanding its history requires factoring in all aspects of its accounting environment. Burchell et al., (1994: 402) say, “Accounting, so seen, is intimately implicated in the construction

and facilitation of the contexts in which it operates. It cannot be extracted from its environment like an individual organism from its habitat.” The Rwandan

context is complex because of various reasons: First, Rwanda belonged to the French-German accounting tradition and is one of the few countries in sub-Saharan Africa that moved from this tradition to the Anglo-Saxon accounting tradition. Further, Rwanda remained among the countries which continued to enforce the OCAM standards in their original version until recently till it adopted IFRS in 2009. Some countries adapted OCAM to suit the demands of their local economies and others shifted to new local or regional standards (Causse, 1999; Hummel, 1989; Kessinger, 1965). Describing the taxonomy of the French-German and Anglo-Saxon accounting traditions, Nobes (2003) discusses the legal differences embedded in the two accounting traditions: Codes and common law differ in the orientation towards tax rules and investors as major users of financial reports. Ha-Joon (2005) argues that changing accounting standards may have implications for the bonuses given to the practitioners and also on their performance evaluations. Consequently, the shift from OCAM standards to IFRS meant a lot of reforms in the legal and economic environment.

Second, IFRS’ adoption in Rwanda unfolded after a long period of conflict in the country from 1959 to 1994 which culminated in the genocide of the Tutsis in 1994. Many Rwandans moved to neighboring countries and across the world during the conflict and their repatriation after the genocide created a unique accounting situation that was characterized by a combination of accounting traditions.

Finally, Rwanda adopted IFRS when it was economically and socially devastated by a lingering conflict, war and genocide. Human, economic and infrastructural resources had been destroyed and the need for reconstruction, reconciliation and development were the over-riding objectives for the Government of Rwanda at that time.

Given this background, I now investigate how the Rwandan and international context contributed to the development of accounting practices and institutions in

(15)

Rwanda and the role that accounting played in fine-tuning the environment in which it is embedded and operates. My research also responds to calls from researchers (Annisette, 2006; Elad, 2015; Rahman, 2010) who have expressed concerns about the scarcity of research activities related to the African continent in general, and to countries with French-German accounting traditions in particular. emphasize that research on accounting history will grow stronger if contributions from other scholars, other settings, other periods, other spaces, other economies and other contexts are extended. Second, the context offers some research windows as far as history of accounting is concerned. Bhimani (1994) asserts that economic, social and organizational contexts are potential and important sources for explaining changes in accounting procedures.

My study allowed me to construct how the specific Rwandan context along with the global accounting environment molded the country’s current accounting practices and institutions. The history of accounting in Rwanda was shaped by her colonial accounting legacy, by the accounting initiatives after independence in the 1960s, by the absence of accounting professionals, by the long-standing political and social conflicts accompanied by related movement of Rwandans out of the country and the need for developing the country as it was socially and economically devastated by following trends in accounting standards worldwide and the requirements of bilateral and multilateral partners in its development. Taken together all these factors led the government to opt for IFRS. My findings also show how accounting standards became a major strategy which contributed to economic planning and IFRS’ adoption created accounting harmonization thereby resolving the accounting chaos that had been created by the co-existence of different accounting traditions in the country.

1.2.2 The role of the government in planning the adoption

and implementation of IFRS in Rwanda

IFRS’ adoption and implementation has spread all over the world either on a voluntary or a mandatory basis to promote the quality of financial statements. De George (2016) states that IFRS’ main objectives are promoting good quality accounting and improving the comparability of financial reporting through uniform standards across the globe. Hence, the main and direct advantage of IFRS is high quality financial statements. Their indirect advantages include behavior of the users of financial statements such as investors, creditors and financial analysts in taking decisions. Isabel et al., (2014) argue that IFRS’ adoption has a positive effect on capital markets, analysts’ prediction abilities and investment flows. Nevertheless, the authors also caution that these effects are contingent to factors such as countries’ characteristics (for example, enforcement) and companies’ characteristics. They highlight that using the same rules is not enough to set a common business language. What is also needed are management incentives and institutional factors which play a major role in determining the characteristics of financial reporting.

(16)

16

Even though IFRS are borderless accounting standards, their adoption and implementation has encountered pitfalls related to the local context in the countries opting for their adoption. Obradovic (2014) highlights that IFRS’ practical implementation is challenged by local realities such as inconsistencies in the procedures, regulatory frameworks and different methods of adoption and this is leading to their nationally colored versions. IFRS being seen as foreign accounting standards (elaborated in developed countries and developed economies with related accounting institutions, practices and infrastructure) could make their implementation difficult if their adoption is not meticulously prepared for and their implementation is not monitored. Ball (2016) states that for most of the benefits credited to IFRS to be a success what is needed is uniform implementation in a range of countries. However, this seems unlikely and requires more than creating regulatory enforcement mechanisms. Kvaal et al., (2010) note that consistent differences in IFRS’s implementation can be explained by the adopting countries’ accounting traditions. Uniform implementation as underscored by these authors is a necessary condition to reap the advantages of worldwide standardized accounting standards. A government’s role as a key stakeholder in IFRS from the upstream to the downstream of the process of adoption and implementation is also significant for their success.

While literature on the role of governments in IFRS’ adoption and implementation have focused on the motives, especially why countries adopt IFRS, the ‘how’ question addressing the process that leads to the adoption of IFRS is less explored. A government’s role of providing the framework for IFRS’ adoption and implementation and its attitudes and determination about adopting these standards could make a difference to the quality of IFRS’ adoption and implementation at the country and firm levels. Bonetti et al., (2016) found that country-level enforcement and firm-level corporate governance mechanisms were complementary in enhancing the quality of financial reporting by taking advantage of IFRS’ mandatory adoption. If IFRS’ adoption and implementation at the firm level is a legal requirement this is not the case for governments which have an alternative to integrate these international standards in their jurisdictions. The level of enforcement depends on perceptions about the pros and cons of IFRS’ adoption which in turn bolsters governments’ commitment to their enforcement. Like many other countries, Rwanda decided to shift from local accounting standards to IFRS as legal reporting standards in 2009. IFRS’ adoption and implementation came amid a very complex and diverse accounting environment that needed a great involvement of the Government of Rwanda (GoR). IFRS’ adoption was influenced by the country moving from a French-German to an Anglo-Saxon accounting tradition, from a long period of conflict period leading to its population moving to neighboring countries and also across the world then coming back with different accounting traditions and moving from a non-existing accounting professional organization and an economic and social emergency to the need for reconstructing a totally devastated country.

The objective of my thesis is understanding GoR’s role in the planning, adoption and implementation of IFRS. It pays specific attention to the pre- and

(17)

post-adoption contexts. Hellman et al., (2010) state that accounting as the language of business is deeply embedded in a country's social, political and economic environment and that these contextual factors cannot be ignored in any process of convergence.

IFRS’ effective adoption needs the government’s total commitment without which the adoption will remain ceremonial. A government will be committed to their adoption if the expected contributions of the accounting standards help in addressing its national development agenda in a tangible manner.

1.2.3 Development of the accounting profession in Rwanda

The sociology of professions offers dynamic theoretical explanations about the development of professions in general. Functionalist and interactionism perspectives of professionalization (Saks, 2012; Uche, 2002) argue that having specific knowledge imbued with the ambition of serving public interest and integrating a system of interests protected by social closure mechanisms are the determinant factors in this. Amid criticism of functionalist and interactionism explanations developed by the neo-Weberian theory of professionalization, some authors (Larson, 1977; Saks 2012; Weber; 1978) explain professionalization as occupational groups’ ability to maintain their competitive advantage and status in a world of complex economic, political and social interests and the capacity of getting scarce resources, which they refer to as skills and expertise, for social and economic benefits, as a process towards social closure defined as a restriction of membership to a social group to protect its interests.

Some empirical studies also explain professionalization by clarifying the reasons for its existence (Carnegie and Edwards, 2001; Walker and Shackleton, 1995), describing its processes (Ramirez, 2001), explaining the roles allocated to different stakeholders in the process of professionalization (Agrizzi and Sian, 2015) and reflecting on the nature of the profession (Agrizzi and Sian, 2015; Mihret et al., 2017).

While research provides explanations about the motivation, the process and the stakeholders in the development of professions and their relative outcomes, it is also important to put these explanations in context even if some similarities are seen in professionalization and hallmarks have been found and justified by the fact that professionalization is embedded in the economic, social and political landscape. Willmott, (1986: 556) asserts that “the organization of the profession cannot be adequately understood independently of an appreciation of the political, economic and legal circumstances that have supported and constrained its development.”

The accounting profession in Rwanda developed in a unique environment and consequently its development followed a specific trajectory where the role of the stakeholders and their power relations were significant. Before it had any accounting profession, Rwanda followed the French-German accounting tradition. However, it had just recovered from a long-lasting conflict which needed quick economic, social and political reconstruction. Rwanda had no

(18)

18

organized accounting profession and had inherited accountants from different traditions (French-German and Anglo-Saxon) whose attempts to organize themselves ended in a deadlock.

My thesis tries to understand how professionalization in accounting unfolded in Rwanda by using an analytic framework that includes the reasons, the pathway and the involved stakeholders and their power relations and using these to understand the nature of the profession. It emphasizes Rwanda’s specific context in which the accounting profession was embedded.

My study shows that professionalization in accounting developed under exogenous and endogenous factors with the main objective of supporting IFRS’ implementation which in turn was adopted to foster economic development and to bring harmonization in accounting practices and institutions which were in a stalemate due the French-German and Anglo-Saxon accounting tradition. Further, the professionalization of accounting contributed to resolving latent conflicts among practitioners. Finally, my study suggests a type of corporatism in transition besides state and liberal corporatism.

1.2.4 Comparison of IFRS and OHADA’s accounting quality

Accounting quality has been a major concern for users of accounting information including investors, claimholders, standard setters, regulators and other stakeholders (Ball, 2016; De George et al., 2016; Soderstrom, 2007). Accounting quality is understood as encompassing the quality of inputs (standards, procedures and resources) in the process of their elaboration and the expected features of different users of financial information. Frankel and Li, (2004) maintain that accounting quality reduces information asymmetry while Chen et al., (2010) contend that the quality of accounting mirrors the extent to which it fairly portrays the economic situation. De George et al., (2016) and Ball (2016) highlight that the quality of accounting helps improve transparency, bringing down capital costs, promoting investments between countries, facilitating the comparability of financial information and easing foreign analysts’ activities.

Since the introduction of IAS/IFRS it has been observed that there has been a consistent increase in the number of countries adopting these standards regardless of the implementation challenges attributed to local contexts. According to IASB (2017), till 2017, 144 jurisdictions required the use of IFRS for all or most publicly listed companies, while 12 additional jurisdictions permitted its use. In sub-Saharan Africa most of the IFRS adopting countries were following the Anglo-Saxon accounting tradition. Though some countries like Rwanda and Madagascar with the French-German accounting tradition veered to IFRS, a majority still the use local standards, OHADA.

By progressively becoming worldwide accounting standards, IFRS have received researchers’ attention. One of the major innovations in IFRS has been the introduction of IAS 39 which is related to financial instruments. This brought about an upheaval in the treatment of financial assets, a portfolio which is very important particularly for financial institutions. The treatment of loan loss

(19)

provisioning (LLP) in the banking sector has been totally modified by limiting it from expected losses to incurred expenses with the objective of discouraging managers to use the discretion previously available for manipulating accounting figures for their own interests (Gebhardt and Novothy-Farkas, 2011).

My research also focusses on how IAS 39’s implementation in the context of sub-Saharan Africa’s banking sector has improved accounting quality as compared to OHADA standards. Literature has explored the quality of accounting by comparing the pre- and post-adoption period, my study investigates the quality of accounting information across IFRS and OHADA, two standards being enforced in Rwanda. I pay specific attention to direct proxies of accounting quality, earnings management (EM) and timely loan loss recognition (TLR) by using them as proxies of accounting quality.

My study finds mixed results in measuring accounting quality. Both income smoothing approach and timely loan loss recognition does not witness any improvement of accounting quality for commercial banks using both IFRS and OHADA standards.

My study contributes to literature on accounting quality in three ways: First, it investigates accounting quality in a totally different setting where the enforcement of accounting standards and incentives may be weaker. Soderstrom (2007) highlights that quality of accounting standards is not a sufficient condition. Second, while existing scanty researches compare the quality of accounting between IFRS and OHADA they do so using qualitative approaches (Avele and Degos, 2012; Elad, 2015; Nobes, 1998; Randriamiarana, 2015) my study follows the quantitative approach to study accounting quality across IFRS and OHADA in sub-Saharan African banks. Third, it responds to a call from many researchers advocating the integration of the African continent in the accounting agenda of the world arguing that different settings may offer diversified insights about accounting research. Researchers (Elad 2015; Ozili, 2017; Rahman, 2010) and Colasse (2009) point out the biases in Anglo-centric research.

1.3 An overview of the research design

1.3.1 Mixed-methods approach

My research uses the mixed-methods approach. Burke and Onwuegbuzie, (2007:123) define mixed methods as: “A type of research in which a researcher

or team of researchers combines elements of qualitative and quantitative research approaches for broad purposes of breadth and depth understanding and corroboration.” Tashakkori and Teddie, (2008) contend that mixed method

studies are a result of the pragmatist paradigm and both qualitative and quantitative approaches can be used across different stages of the research. Burke and Onwuegbuzie, (2004) divide mixed method research into two main categories – the mixed-model which brings together qualitative and quantitative approaches

(20)

20

with or across the research process and mixed-methods which integrate the same approaches but in different phases of the overall research.

I adopt the mixed-methods approach for the following reasons. First, my research endeavors to have an in-depth understanding of the adoption and implementation of IFRS in Rwanda by exploring the pre-adoption phase and secondly it also considers the implementation phase by inquiring into the effects of IFRS’ implementation in terms of the quality of accounting. While the first objective follows a qualitative inquiry, the second is a quantitative investigation of the quality of accounting. The mixed-methods approach combines the conceptualization of the adoption and its practical implementation as suggested by the pragmatic viewpoint.

1.3.2 The qualitative approach

My research follows the oral history research approach for the reconstitution of accounting history in Rwanda in Papers 1 and 3. Janesick (2014) contends that the oral history approach is a process of gathering stories like statements and collecting experiences and reminiscences from resource persons who have direct access to information about any historical event. As such, oral history offers qualitative researchers a golden opportunity to invest in participants’ lived experiences through techniques including interviews, document analyses, photographs and videos. According to Perks (1995) this approach offers a unique approach to gathering historical data as it helps a researcher to ‘‘question the

makers of history face to face’’. Different accounting history researchers

(Carnegie et al., 1996; 1991; Hammond and Sikka, 1996) argue that the oral history approach increases the density and details of historical research and this approach is of great importance given the dearth of studies following this approach. Two main techniques are used in oral research interviews and documentary review. A combination of these research techniques brings with it the advantage of diversified and deepened sources of data, increases the quality of the findings and conclusions and makes the story more credible (Parker, 1999). Vaismoradi et al., (2016) state that two main methods are commonly used in a qualitative interpretation -- content analysis and thematic analysis which proceed using a deductive or inductive approach. Gbrich (2007) argues that a content analysis is more descriptive and applies to explorative studies while a thematic analysis is associated with a detailed and nuanced account of data. The inductive approach can also be used for data analysis. Burnard et al., (2008) describe the inductive approach to qualitative data analysis as a process of identifying themes and categories by examining similarities and differences at different levels of abstraction and interpretation. I chose the inductive content analysis approach for data analysis for two main reasons: First, the nature of the topic which describes the phases that marked the development of accounting history and the accounting profession without much interpretation and abstraction. Second, there is a scarcity of research on Rwanda’s accounting

(21)

history and accounting profession and following this approach makes the study more explorative.

Paper 2 of this thesis on planning IFRS’ adoption and implementation in Rwanda uses elites’ interviews and a thematic content analysis. Elites’ interviews have received the attention of different researchers. McDowell (1998) asserts that elite employees have higher positions in the hierarchy of merchant and investment banks. Describing elites, Odendhal et al., (2014) say that elites have more knowledge, money, status and occupy senior positions as compared to normal staff members. Marshall and Rossman, (2010) and Robson (2008), concur that elites’ interviews have the capacity to enhance the quantity and quality of data collected, provide a good communication environment and have better research appreciation. Odendhal et al., (2014) assert that interviewing elites has specific methodological issues including difficulties in gaining their trust, their being less open, difficult to access and unwilling to be interviewed because of privacy and secrecy issues. Strategies have been devised to address these challenges. I used the snowball sampling strategy of gaining access to some senior staff and gaining their confidence through a network of other senior staff (Arksey and Knight., 1999). For example, a senior staff in the Central Bank of Rwanda helped me access senior staff in commercial banks. Second, to collect good quality data and winning the confidence of the elites, I prepared psychologically and prepared the interview guide carefully.

In Paper 2, I use the thematic contentment analysis for data analysis. Braun and Clarke, (2006:79) define thematic content analysis as “a method for

identifying, analyzing and reporting patterns (themes) within data.” DeSantis

and Ugarriza., (2000) define a thematic content analysis as a method of qualitative data analysis to find out the common thread that stretches throughout the interview data. Literature suggests different approaches in qualitative data analysis. Burnard et al., (2008) argue that in a qualitative data analysis the following should exist: The deductive approach and the inductive approach. The deductive approach involves using a structure or pre-determined framework to analyze data while the inductive approach involves analyzing data with less or no pre-determined theory, structure or framework and using the actual data itself to derive the structure of the analysis.

Given the nature of my topic which deals with high level policy research and whose informants were senior executive staff involved in IFRS’ adoption and implementation at the planning level elites’ interviews are important for Paper 2. I selected a thematic content analysis as I wanted to develop a general conceptual framework for IFRS’ adoption that was applicable beyond Rwanda.

1.3.3 Quantitative approach

The measurement of accounting quality uses different proxies. Elias (2012) provides metrics which include endogenous constructs which are also referred to as accounting-based constructs and exogenous or market variables. The first is composed of earnings management and loan loss recognition while the second

(22)

22

includes value and credit relevance. I used the accounting-based approaches for two main reasons: First, my study compares two different accounting traditions from the lens of quality and second, the study is conducted in sub-Saharan Africa where capital markets are less developed. Allen et al., (2011) states that the lack of capital markets explains the less activity of commercial banks on capital markets.

(i) Earnings management measurement through income smoothing

Ewert and Wagenhofer, (2005) argue that tighter accounting rules decrease managers’ propensity to engage in earnings management practices because of tough individual regulatory and litigation risks. Hence, tighter accounting rules can help in curbing opportunistic managerial discretion and lead to less accounting earnings management. Given the fact that my main research is the bank industry and the importance of LLPs in banks’ financial statements, I test earnings management using specific accruals for measuring income smoothing. Gebhardt and Novothy-Farkas, (2011) highlight that the main advantage of a specific accruals approach is concerned with the possibility of finding the main reasons that may explain the behavior of related accruals. I test comparative earnings management practices across banks which have adopted IFRS and those using OHADA standards using income smoothing. The basic model is:

LLPit = α0 + α1NPLit−1 + α2 VNPLit + α3VLoansit + α4EBTLLPit + εit (1)1

(ii) Corporate governance scores

Though the quality of accounting standards is a pre-requisite of accounting quality, researches point out that it is not the sole variable that explains the quality of accounting (Fearnley and Gray, 2015; JeanJean and Stolomy et al., 2008; Nurunnabi, 2015). Institutional variables are integrated in Model (1) to control for their impact in determining accounting quality. For measuring institutional variables, I used the Worldwide Governance Indicators as updated in 2016. The estimate of these institutional variables stretches on a continuum whose minimum value is -2,5 and the maximum value is +2,5. The following model captures the effect of corporate governance and institutional variables on the quality of accounting:

1_Where

 LLPit, is the current year’s Loan Loss Provision;

 NPLit−1, Beginning level of Non-Performing Loans;

 VNPLit, Change in Non-Performing Loans;

 VLoansit, Change in Loans;

 EBTLLPit, Earnings Before Taxes and Loan Loss Provisions;

(23)

LLPit = α0 + α1NPLit−1 + α2 VNPLit + α3VLoansit + α4EBTLLPit + RegQual +

RoLaw + CoC + εit (2)2

(iii)

Timely loan loss recognition measurement

Another analysis of accounting quality focuses on testing how the exclusion of expected losses from loan loss provisions affects banks earnings’ conditional conservatism. Specifically, I scrutinize timely loss recognition by assessing IFRS and OHADA’s effect on the different earning components. An early recognition of loan losses is of great value for banks’ financial statements because of the important role that they play in financial intermediation and their exposure to significant risks pertaining to the nature of their business. To get a better understanding of IFRS and OHADA’s effect vis-à-vis timely loan loss recognition in the banks under study, I follow the approach suggested by Nichols et al.’s (2009) approach which consists of changing earnings before tax into (1) change in earnings before tax and loan loss provisions, and (2) change in loan loss provisions. I developed the following model to test the effect of good and bad news in IFRS and OHADA:

VEBTAit+1 = β0 + β1DVEBTAit + β2VEBTLLPAit + β3NVLLPit + β4Size +

β5EBTLLPDVit + β5LLPDVit3

2_Where

 LLPit, is the current year’s Loan Loss Provision;

 NPLit−1, Beginning level of Non-Performing Loans;

 VNPLit, Change in Non-Performing Loans;

 VLoansit, Change in Loans;

 EBTLLPit, Earnings Before Taxes and Loan Loss Provisions;

 IFRS, Dummy with a value of 1 (0) for the IFRS (OHADA).  RegQual, reflects the regulatory quality

3_Where

 VEBTAit+1 denotes the change in earnings before taxes from year t to t + 1, scaled by total assets

at the end of year t;

 DVEBTAit, dummy variable that takes on the value of 1 if the change in earnings before taxes

in year t is negative, 0 otherwise;

 VEBTLLPAit, the change in earnings before taxes and loan loss provisions in year t (EBTLLPit

− EBTLLPit−1) scaled by total assets at the beginning of year t;

 NVLLPit, the earnings effect of a change in the loan loss provisions in year t: −1∗ (LLPit

−LLPit−1);

(24)

24

1.4 Summary of papers

1.4.1 The history of accounting in Rwanda

This paper discusses the history of accounting in Rwanda and to my knowledge it is the first paper that does so. Accounting history as a research discipline has gone through a paradigm shift from being a technical instrument for decision making to a social and context embedded discipline (Gomes, 2008; Warwick, 1996). (Carter,1987; Gaffikin,1998; Miller et al., 1991) argue that this major change goes hand in hand with ontological, epistemological and methodological patterns. My paper extends the scope of accounting history and responds to calls from researchers of accounting history to integrate Africa in general and sub-Saharan Africa in particular in their research agenda (Annisette, 2006; Carmona, 2004; Elad, 2015; HassabElnaby et al., 2003) and to understand the development of accounting in Rwanda with an emphasis on the role of the context in shaping its current accounting practices and institutions.

The development of accounting in Rwanda has gone through major critical events including the influence of the external environment such as like a colonial legacy, attempts by fresh independent African countries to work out their own accounting standards, the disintegration of the accounting standards initiatives by newly independent African countries and by its general environment (social, political, economic and legal). The findings for Rwanda show a country with two accounting traditions (French-German and Anglo-Saxon) from 1994 to 2008 leading to accounting chaos followed by a shakeup of the French-German accounting tradition and the adoption of International Financial Reporting Standards tethered to the Anglo-Saxon accounting tradition.

The International Accounting Standards which are the current reporting framework in Rwanda were enforced as a strategy to spur economic development. Such a role for accounting in the Rwandan context has proven the bi-directional relationship of accounting and the environment in which it operates. Accounting played a big role as a strategy in Rwanda’s development goals and was emphasized in different strategic planning documents (Government of Rwanda, 2013). Often regarded as a tool for putting pressure and serving the interests of regional and international organizations (Hamidah et al., 2015; Nurunnabi, 2015; Poudel et al., 2014) the adoption of International Financial Reporting Standards has served as a pathway towards a globalizing world.

 DVEBTLLPAit, dummy variable that takes on the value of 1 if ∆EBTLLPit is negative, 0

otherwise;

 EBTLLPDV= VEBTLLPAit * DVEBTLLPAit

 NVDLLPit, dummy variable that takes on the value of 1 if the change NVDLLPit is negative, 0

otherwise;

 LLPDV= NVLLPit* NVDLLPit

(25)

1.4.2 The government’s role in planning IFRS’ adoption and

implementation in Rwanda

This paper investigates the role of the Government of Rwanda in the adoption and implementation of IFRS’ and the International Public-Sector Accounting Standards. My findings suggest that the Government of Rwanda played a key role in IFRS’ adoption and implementation. While literature has focused on why governments adopted IFRS both theoretically (Irvine, 2008; Pricope, 2016) and empirically (Camelia et al., 2017; Stainbank, 2014) the question of how governments planned the adoption and implementation of these standards has received less attention.

My findings indicate that the role of the government is articulated in a set of decisions regarding the adoption and implementation of international accounting standards. First is the rational choice to adopt IFRS based on information like cost efficiency and the effectiveness of the standards in its development agenda. Considerations of the general environment in a globalized era also make a difference. In the Rwandan context, lack of resources (human and financial) in the aftermath of the conflict and genocide did not help in developing new accounting standards and nor could the country afford implementing local standards due to the configurations of a globalized world. Second, to move forward with IFRS what was needed were efforts by key stakeholders to do a situational analysis. For this different review of observance of standards and codes were conducted (the World Bank, 2008) with the assistance of the World Bank and its consultations with stakeholders. Third, the implementation of such standards needs to be done on a prepared ground. What this need are enablers like law reforms, resource mobilization and allocation and developing mechanisms for their implementation.

1.4.3 Development of the accounting profession in Rwanda

This study tries to understand the professionalization of accounting in Rwanda. Using a historical approach, the study discusses critical events that marked this process. To get insights into the phenomenon under study, the paper structures its analysis around key themes of professionalization and professionalism including the identification triggers of professionalization, the process, stakeholders in the process and their power relations and finally the nature of professionalism. My findings suggest that both exogenous and endogenous factors co-determined the professionalization process as well as the resulting professionalism. It also argues that professionalization was context bound; this has also been argued by Wilmot (1986). In the Rwandan context, accounting professionalization played an indirect role in economic development by supporting the implementation of IFRS. It also played an important role in conflict prevention and resolution. Since accounting practitioners did not agree on creating an accounting profession due to their diverging accounting traditions, this became a source of potential conflicts.

(26)

26

While in other contexts, professionalization has been found to be a tough inter and intra professional competitive process, in Rwanda’s context social closure was quasi-granted to accounting practitioners by a win-win situation. The study complements literature by introducing corporatism in transition in comparison to the existing forms of corporatism like liberal corporatism and state corporatism (Schmitter, 1974; Unger and Chan, 1996; Yee, 2012).

1.4.4 Comparison of IFRS and OHADA’s accounting quality

My research compares the accounting quality of IFRS and OHADA standards, accounting standards in use mainly in French-Speaking sub-Saharan countries. Literature argues that OHADA standards blend the French-German and the Anglo-Saxon accounting traditions to meet the requirements of the reporting framework in a globalized economy and likens the IFRS. Researches have highlighted the efforts made by OHADA regulators to integrate IFRS’ principles (Avele and Degos, 2012; Elad et al., 2009) for them to become global standards. This paper uses the casual-comparative research design and collects data from commercial banks using the two types of accounting standards to compare their accounting quality. To measure accounting quality, it uses two metrics developed by previous researches (Elias, 1999, 2012; Liu et al., 2011) -- earnings management and loan loss recognition.

My findings indicate that the quality of accounting did not improve since the adoption of IFRS when it comes to income smoothing metric and timely loan loss recognition. Such findings insist of the inextricable nature of accounting standards and the environment in which these standards are implemented.

(27)

References

Agrizzi, D. and Sian, S. (2015), Artificial corporatism: A portal to power for accountants in Brazil, Critical Perspectives on Accounting, 27, 56–72. Alona, A. and Dwyer, P.D. (2014), Early Adoption of IFRS as a Strategic Response to Transnational and Local Influences, The International Journal of Accounting 49 (2014) 348–370.

Allen, F., Otchere, I., and Senbet, W.L. (2011), African Financial System: A review, Review of Development Finance, 1, 79-113

Annisette, M. (2006), People and periods untouched by accounting history: an ancient Yoruba Practice, Accounting History, 11(4), 399-417.

Arksey, H. and Knight, P. (1999), Interviewing for Social Scientists: An

introductory Resource with Examples. Thousand Oaks, CA: Sage

Avele, D. and Degos, J.G. (2012), Compatibility Between OHADA Accounting System and IASB Conceptual Framework (IFRS): The Real Difficulties and False Problems, ASB Conference 2012 Proceedings, Dalhousie University, pp. 89-106.

Ball R. (2016), IFRS-10 Years Later, Accounting and Business Research, 46 (5), 545–571.

Bhimani, A. (1994), Accounting enlightenment in the age of reason, The

European Accounting Review, 3:3, 399-442.

Bonetti, Pietro, Michel L. M., and Bonetti, P.A. (2016), The Influence of Country- and Firm-level Governance on Financial Reporting Quality: Revisiting the Evidence, Journal of Business Finance & Accounting, 43(9) & (10), 1059–1094.

Braun, V. and Clarke, V. (2006), Using thematic analysis in psychology, Qualitative Research Psychology, 3: 77-101.

Burnard, P., Gill, P., Stewart, K., Treasure, E., and Chadwick, B. (2008), Analyzing and presenting qualitative data, British Dental Journal, 204, 429-432.

Burchell, S., Clubb, C., and Hopwood, A.G. (1994), “Accounting in its Social Context: Towards a History of Value Added in the United Kingdom”, in Parker, R.H. and Yamey, B.S. (eds), Accounting History: Some

British Contributions. Oxford: Clarendon Press, pp.539–589.

Burgstahler, D., L., Luzi, H., and Leuz, C. (2006), ‘The Importance of Reporting Incentives: Earnings Management in European Private and Public Firms’, The Accounting Review, 81 (5), 983–1016.

(28)

28

Burke, R.J. and Onwuegbuzie, J.A. (2004), Mixed Methods: A Research Paradigm Whose Time Has Come, Educational Researcher, 1 (2), 14-26.

Burke, R.J. and Onwuegbuzie, J.A. (2007), Toward a definition of Mixed Methods Research, Journal of Mixed Methods research, 33 (7), 112-133.

Camelia, I.L, Chirata, C. and Cornelia, D. (2017), The Impact of IFRS Adoption on Foreign Direct Investments: Insights for Emerging Countries,

Accounting in Europe, 14 (3), 331–357.

Carmona, S. (2004), Accounting History Research and its Diffusion in an International Context”, Accounting History, 9 (3), 7-23.

Carnegie, G.D. and Edwards, J.R. (2001), The Construction of the Professional Accountant: The Case of the Incorporated Institute of Accountants, Victoria (1886), Accounting, Organizations and Society, 26 (4–5), 301– 325.

Carter, P. (1987), The Road to Botany Bay: An Essay in Spatial History. London: Faber & Faber.

Causse, G. (1999), Twenty years of accounting standardization and the PCG. His influence in African Francophone countries,

Accounting-Control-Audit, 3 (5), 211-233/Vingt-ans de normalization comptable et le PCG.

Son influence dans le pays d’Afrique Francophone,

Comptabilité-Contrôle-Audit, 3 Tome 5, pp. 211-233.

Chen, H., Tang, Q., Jiang, Y., and Lin, Z. (2010), The Role of International Financial Reporting Standards in Accounting Quality: Evidence from the European Union, Journal of International Financial Management

& Accounting, 21(3), 1-57.

Colasse, B. (2009), Le Syscoa-Ohada à l'heure des IFRS, Revue Française de

Comptabilité; 25- 29. The

Daske, H., Hail, L., Leuz, C., and Verdi, R. (2008), Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences.

Journal of Accounting Research, 46(5), 1085–1142.

De George T.E, Li, X., and Shivakumar, L. (2016), A review of IFRS adoption literature, Review of Account Studies, 21, 898–1004.

DeSantis, L. and Ugarriza, N.D. (2000), The concept of theme as used in qualitative nursing research, West Journal of Nursing Research, 22, 351-372.

Elad, C. (2015), The Development of Accounting in the Franc Zone Countries in Africa, The International Journal of Accounting, 50, 75–100.

Elias, N. (2012), Discussion of the Impact of Mandatory IFRS Adoption on Accounting Quality: Evidence from Australia, Journal of International

(29)

Ewert, R., and Wagenhofer, A. (2005), ‘Economic Effects of Tightening Accounting Standards to Restrict Earnings Management’, The

Accounting Review, 80 (4), 1101–1124. Fearnley, N. and Gray, S.

(2015), National institutional factors and IFRS Implementation in Europe: The case of investment property companies, International

Journal of Accounting and Information Management, 23 (3), 271-288.

Frankel, R., and Li, X. (2004), Characteristics of a firm's information environment and the information asymmetry between insiders and outsiders. Journal

of Accounting and Economics, 37 (2), 229-259.

Gbrich C. (2007), Qualitative Data Analysis: An Introduction (1st edn). London: Sage Publications.

Gaffikin, M. (1998), History is Dead, Long Live History, Critical Perspectives on

Accounting, 9, 631-639.

Gebhardt, G. and Novothy-Farkas, Z. (2011), Mandatory IFRS adoption and accounting quality. Journal of Business Finance & Accounting, 38(3&4), 289–333.

Gomes, D. (2008), The interplay of conceptions of accounting and schools of thought in accounting history, Accounting History, 13(4), 479-509. GoR (2013), Economic Development and Poverty Eradication Strategy 2, Kigali,

Rwanda.

Ha-Joon, Chang (2005) Globalization, Global Standards, and the Future of East Asia, Global Economic Review, 34 (4), 363-378.

Hamidah, T.L., Sukoharsonoc, E.G., and Djamhurid, A. (2015), The Hegemony of International Interests on IFRS Adoption in Indonesia: An Accounting Ecology Perspective, Procedia - Social and Behavioral

Sciences, 211, 104 – 110.

Hammond, T. and Sikka, P. (1996). Radicalizing accounting history, the potential of oral history. Accounting, Auditing and Accountability Journal, 9(3), 79–97.

HassabElnaby, H.R., Epps R.W., and Said A.A. (2003), The impact of environmental factors on accounting development: an Egyptian longitudinal study, Critical Perspectives on Accounting, 14(3), 273– 292.

Hummel, P. (1989), OCAM accounting Plan and French Accounting Plan: A direct filiation or not? AFC 10th_{Congress, France/ Plan Comptable}

OCAM et Plan Comptable Français: Filiation Directe ou Non? 10ème Congrès de l’AFC, France.

IASB (2017), Available at: https://www.ifrs.org/use-around-the-world/why-global-accounting-standards/Consulted, accessed on 18 May 2018.

(30)

30

Isabel Maria Estima Costa Lourenço and Manuel Emílio Mota de Almeida Delgado Castelo Branco, Main Consequences of IFRS Adoption: Analysis of Existing Literature and Suggestions for Further Research, R. Cont. Fin., Vol. 26, No. 68, pp. 126-139

Irvine H. (2008), The global institutionalization of financial reporting: The case of the United Arab Emirates, Accounting Forum, 32, 125–142. Janesick, V.J. (2014), “Oral History Interviewing: Issues and Possibilities” in

Leavy, P. (ed.), The Oxford Handbook of Qualitative Research. United Kingdom: Oxford Handbook Online.

JeanJean, T. and Stolomy, H. (2008), Do accounting standards matter? An exploratory analysis of earnings management before and after IFRS adoption, J. Account. Public Policy, 27, 480-494.

Kessinger’s Worldwide, LLC (1965), Kessinger’s Record of World Events, Malagasy, Mauritania, Ghana, China, French, p.20893.

Kvaal, E., and Nobes, C. (2010), International differences in IFRS policy choice: a research note. Accounting and Business Research, 40(2), 173–187. Larson, M.S. (1977), The Rise of Professionalism. Los Angeles: University of

California Press.

Liu, C., Lee J. Yao, L.J., Hu, N., and Ling Li, L. (2011), The Impact of IFRS on Accounting Quality in a Regulated Market: An Empirical Study of China, Journal of Accounting, Auditing & Finance, 26(4), 659–676. Marshall, C., and Rossman, G. B. (2010), Designing qualitative research (5th

ed.). Thousand Oaks, CA: Sage.

McDowell L. (1998), Elites in the city of London: some methodological considerations. Environment and Planning A, 30, 2133–2146.

Mihret, D.G, Alshareef, N.M., and Bazhair, A. (2017), Accounting professionalization and the state: The case of Saudi Arabia, Critical

Perspectives on Accounting, 45 29–47.

Miller, Peter; Trevor, Hopper, and Laughlin, Richard (1991), The new accounting history: An Introduction, Accounting Organizations and Society, 16, (5/6), 395-403.

Munslow, A. (2007), Narrative and history. Basingstoke: Palgrave Macmillan. Nichols, C., Wahlen, M.J., and Wieland, M.M. (2009), Publicly traded versus

privately held: implications for conditional conservatism in bank accounting, Revue of Account Studies, 14, 88–122.

Nobes, C. W. (1998). Towards a general model of the reasons for international differences in financial reporting. Abacus, 34, 162–187.

Bobes, C. W. (2003). On the myth of Anglo-Saxon financial accounting: A Comment. International Journal of Accounting, 38(1), 95 – 104.

(31)

Nurunnabi, M. (2015), Tensions between politico-institutional factors and accounting regulation in a developing economy: insights from institutional theory, Business Ethics: A European Review, 24 (4), 398-424.

Obradovic, Vladimir (2014), Inconsistent Application of International Financial Reporting Standards, Economic Horizons, 16 (3), 231 – 243.

Odendahl, T. and Shaw, A. M. (2014), “Interviewing Elites”, in Gubrium, J.F and Holstein, J.A. (eds), Handbook of Interview Research: Sage Publications Inc., United Kingdom.

Odia, J. O and Ogiedu, K.O (2013), IFRS Adoption: Issues, Challenges and Lessons for Nigeria and other Adopters, Mediterranean Journal of

Social Sciences, 4 (3), 389-399.

Ozili, P.K. (2017), Bank Profitability and Capital Regulation: Evidence from Listed and non-Listed Banks in Africa, Journal of African Business, 18 (2), 143-168.

Parker, L. (1999), Historiography for the new millennium: Adventures in accounting and management. Accounting History, 4(2), 11–42. Perks, R. (1995), Oral history: talking about the past. London: The Historical

Association.

Pettigrew, M.A. (1997), What is a processual analysis, Scandinavian Journal of

Management, 13 (4), 337-349.

Poudel, G., Hellmann, A., and Perera, H. (2014), The adoption of International Financial Reporting Standards in a non-colonized developing country: The case of Nepal, Advances in Accounting, incorporating Advances in

International Accounting, 30, 209–216.

Pricope, C.F (2016), The role of institutional pressures in developing countries. Implications for IFRS1, Theoretical and Applied Economics, XXIII 2(607), 27-40.

Rahman, A.S. (2010), Critical accounting research in Africa: Whence and whither, Critical Perspectives on Accounting, 21, 420–427.

Ramanna, K. and Sletten, E. (2014), Network Effects in Countries' Adoption of IFRS, The Accounting Review, 89 (4), 1517-1543.

Ramirez, C. (2001), Understanding Social Closure in its Cultural Context: Accounting Practitioners in France (1920–1939), Accounting,

Organizations and Society, 26 (4–5), 391–418.

Randriamiarana, J. (2015), The role of accounting in economic development: Case of IFRS in Western Africa, Research in Management Sciences, 5 (110), 61-85.