Difficulties in the application of International Accounting Standards and International Financial Reporting Standards IAS/IFRS in Algeria: A literature review
Keywords:
Difficulties and challenges, IAS/IFRS, Financial Accounting System, AlgeriaAbstract
This study aims to highlight the difficulties and challenges associated with implementing International Accounting Standards and International Financial Reporting Standards in Algeria, particularly in light of the accounting reform undertaken by the country in early 2007. This reform led to the adoption of the Financial Accounting System, which is rooted in the philosophy and conceptual framework of international accounting standards. The reform was introduced as part of Algeria’s efforts to align with the global business environment and in response to calls from international accounting bodies advocating for greater harmonization of accounting practices worldwide. The study reached several conclusions, the most significant being that Algeria’s business environment is not yet equipped to effectively apply IAS and IFRS. This is due to the absence of an active financial market and a shortage of qualified experts capable of comprehending the philosophy behind this accounting transition. Additionally, the predominance of tax law over accounting regulations, the weakness of academic and professional training among practitioners, and the lack of continuous updates to accounting laws and regulations in line with international developments further hinder the successful implementation of these standards.
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Ahmed Chemseddine Bouarar, Challenges of Adopting International Accounting Standards and International Financial Reporting Standards (ias, Ifrs), Algeria as an Example, A Literature Review., REVUE NOUVELLE ECONOMIE, N°:17, vol 02, 2017.
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