I need help with my graduation project related to IFRS in etisalat in UAE.I need to have the methodology, data collection and analysis done, and recheck the literature review.

RUNNING HEAD: Is International financial reporting standards applied in Etisalat, UAE?
Is International financial reporting standards applied in Etisalat, UAE?
Research Literature Review
Is International financial reporting standards applied in Etisalat, UAE?
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Table of Contents
Introduction ................................................................................................................................................... 3
Literature Review .......................................................................................................................................... 4
Theme 1: Economic consequences of mandatory International Financial Reporting ............................... 4
Theme 2: IFRS adoption and its impact on economy and stock price synchronicity ............................... 7
Theme 3: The level of compliances and the impact on the business due to IFRS .................................. 10
Conclusion .................................................................................................................................................. 13
References ................................................................................................................................................... 14
Is International financial reporting standards applied in Etisalat, UAE?
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Introduction
The role of the management and the government is important to build framework for
adoption of mandatory standards of IFRS. The core competence management is to express
positive data on the financial operation of any organization. The role of auditors and the
accountants comes later after successful adoption of IFRS and its relevance to express view and
opinions about the financial statement and its use of professional ethics, skepticism during
ecoding of accounting information. The recording of financial information and expressing
opinion in a manner by the management and the auditors has to have true and fair view and that
should reduce information asymmetric. The professional knowledge and the applicable standards
are more important to make sure that the client is getting the right idea and that idea is properly
eflected in financial statements. The need of the accounting standard is to harmonize the
accounting and the recording policies with utmost sincerity to enhance the chances of
comparability. The accounting standards, especially IFRS is set of principles instead of as the set
of rules and guidelines as provided in most of the local accounting standards. The intricacies of
accounting practices allow companies and other organizations to record financial transactions for
that benefit. The professional has the responsibility to provide the information but he does not
need to keep the information with him.
Is International financial reporting standards applied in Etisalat, UAE?
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Literature Review
Theme 1: Economic consequences of mandatory International Financial Reporting
The lack of literature about application and benefits of IFRS in UAE suggest that there is
still a wide level of uncertainty about beneficial gains of IFRS for UAE. Azzam Alsuhaibani
suggested that it is a difficult issue for the GCC countries to practice IFRS. This is due to GCC
members new entries in WTO and in G-20. The benefits realized by the adoption of the IFRS
are mentioned here. E
ors and forecasts dispersion is declined (Alsuhaibani, 2012).
Comparability factor is enhanced considerably in European countries since the adoption of IFRS
as found by the GianFranco Sicilian. The standards differences have been reduced on financial
eporting. IFRS promotes same accounting method and accounting policies. There are multiple
options available in IFRS to recognize and measure assets, liabilities and future liabilities.
Systematic differences of accounting are found due to changes in cultural and political
framework and conflicting views and interests.
Prasanna Kulkarni and Abhijit V. Chirputkar have mentioned that elements appearing
above financial statements are affected due to change in accounting policies. The change in
accounting policies and adjustment requires proper understanding of business and of industry.
The cash inflows and the cash outflows are more important than accounting profits. IFRS is
principle based approach and it has motioned principles rather than rule for accounting related
ecords. The two important cost based approach is used and applied in accounting policies
historical cost based approach and fair value accounting. It is important that IFRS, a
comprehensive and global set of accounting standards should mandatorily be applied for the
companies. The fair value accounting is being made mandatory for assets and liabilities. The
Is International financial reporting standards applied in Etisalat, UAE?
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accounting assets and the gains are important aspects of the business policy and it is expected to
e part of fair value accounting. The government support for penetration of accounting policies
are considered to be most appropriate for the business and industries. The process such as
evenue recognition becomes part of the organizational structure. The companies will have to
show flexibility in accounting to adopt those prescribed standards. The cost ascertainment of
liabilities and inventories would be part of the policies with greater impact on the business and
on the industries (Kulkarni & Chirputkar, 2013).
Importance of IFRS
There are various numbers of researchers who prove that accounting quality is found higher in
those firms that follow the IFRS principles in the organization. (Barth, Landsman & Lang, 2008).
There is very good relationship is found between application of IFRS principles and
enhancement in earning, returns and increase in share prices. Barth, Landsman and Lang have
compared the data of 21 countries where the application of IFRS is compared with non
application of it among firms and it is found that higher accounting quality has been achieved by
applying companies. (Chua, Cheong, & Gould, 2012). Medson (2011) has identified a
significant positive relationship between standardization of accounting and reduction of litigation
isks as well as simplification of the complex tasks and enhancement of professional legitimacy.
Similar results are stated by Karamanou and Nishiotis (2009) who found positive relationship
etween accounting standards and value of company. Halbouni (2005) and Jeno (2010) also
identify the similar findings in terms of implementing IFRS. Bewley (2008) confirms that quality
of disclosure is higher and this leads to reduce cost of capital for firms and other cost of debt.
The strong disclosure assists companies to development of capital market with liquidity and
active trading. IFRS is found to improve the quality of financial statement. Domestic countries
Is International financial reporting standards applied in Etisalat, UAE?
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accounting standards miss the disclosure, recognition as well as measurement to that standard
that IFRS requires and hence the suggestions are offered to apply IFRS. It is suggested that
emerging economies and countries must adopt IFRS standards. System of disclosure assists to
educe the information contrast between financial managers and external users. Ding et al.,
considers IFRS as a reference of logical benchmark. Tsalavoutas and Evans found that there is a
positive impact with the net profit gain and financial reporting enhancement. Latridis (2010)
found similar results about the company position and its financial achievement. IFRS has been
ecognized for standards application and for reliability and relevance as well as simplicity and
comparing abilities (Outa, 2011). Role of IFRS in case of financial crisis is also important toe
explore. The financial crisis is often caused by lack of transparency (Jacob & Madu, 2009; Green
and Mo
is, 2010). Lack of transparency according to them is one of causes to
ing in financial
crisis.
There are some other critics as well who established negative role of IFRS in financial crisis.
Skowron and Kristensen (2012) affirm that IFRS is a bad accounting system.
Oliveira,Roudrigues and Craig (2011) suggest that there was not positive effect of adoption of
IFRS.
Interest of investors with IFRS implementation indicates preference towards it (Jacob & Madu,
2009). Similar statement is offered by Green and Mo
is (2010). Reporting standards
enhancement increases confidence of the investors in companies (Kuan & Noronha, 2007).
Application of the IFRS in UAE
Alijifri and Khasharmeh (2006) identify that English language and size of company have...