A Qualitative Evaluation of Preparedness of Rural Banks in Ghana for The Implementation of IFRS.

Abstract:

For rural and community banks to globally integrate, improved transparency and comparability require IFRS. There are, however, impediments that RCB faced from the implementation of IFRS, which include financial constraints, inadequate technical capacity, and inadequate human resources. In this research a qualitative approach was employed by administering semi-structured interviews to 17 top RCB executives in the Bono and Ahafo regions of Ghana. Findings of the study indicate that IFRS awareness and comprehension are low among RCB staff, with only senior management exhibiting moderate awareness and comprehension levels. Significant impediments encompass non-IFRS-compliant software, reluctance to adapt, and elevated compliance expenses. Moreover, RCBs lack the requisite financial and technical resources for effective IFRS implementation. The authors advocate for specialized training programs, incremental IFRS implementation, and enhancements to IT infrastructure to ensure compliance. The findings advance the discussion on financial reporting reforms in emerging economies, highlighting the necessity for regulatory assistance to improve RCBs' preparedness for IFRS implementation.