The Importance and Adoption of International Financial Reporting Standards (Ifrs) in Saudi Arabia

Abstract

This study uses a particular institutional framework to study the external and internal mechanisms. A small study is looking into the adoption of “IFRS” in countries with political, economic, and cultural ties in Saudi Arabia. For the research, a pragmatic strategy integrating quantitative and qualitative methodologies was made. A survey was used to learn about the selected group’s attitudes toward the adoption of “IFRS” in Saudi Arabia. According to the findings, the majority of survey participants supported “SAMA” and “SOCPA’s” ability to adopt “IFRS”. This research shows that the capital market was a major driver in Saudi Arabia’s decision to suspend its standard and also that the largest particular advantage of “IFRS” adoption was indeed an enhancement in reporting quality and transparency. “SAMA” and “SOCPA” choices. Nevertheless, there used to be a significantly different “(p = 0.001)” on whether they thought that financial reports generated in line with “IFRS” met the expectations of the various stakeholders. This means that the “Mann-Whitney test” now shows that academics differed significantly from the other 3 groups on the this-question, with such a lower placement estimate of 3.43, relating to “financial analysts (4.56)”, “accountants (4.47)”, and “auditors (4.47)”. This variation might be attributed to endogenous internal factors such as regulatory structure.