Browsing by Author "Muthoka, Dorothy Mutanu"
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Item Cultural – Political Influence on the Mandatory Adoption of IFRS: Case of South Korea and Kenya(Accounting Journal, 2020) Muthoka, Dorothy Mutanu; Soon, Lee JangInternational Financial Reporting Standards (IFRS) are inherent characteristics of principles based framework that is voluntarily adopted by a country for communication purpose. This means the standards leave more details of implementation to individual judgements. The International Accounting Standards Board (IASB) hopes the world of accounting to be mono-lingual in the future. Today, more than 130 economies have made IFRS their official language in financial reporting. On one hand, the objective of having a one size fit all financial statement being guided by this same adopted IFRS Standards has not been achieved. On the other hand, some persistent challenges are still facing the accounting bodies in connection with full IFRS adoption. The accountants, regulators and various users of financial information must be willing to understand the challenges that exist from across countries to help achieve same objectives. Consequently, this paper seeks to answer two major questions relating to this. Firstly, does cultural-political influence have any impact on the adoption of IFRS? Secondly, if it does, are there some specific cultural-political aspects that could have an effect on the IFRS adoption? Survey method by hand collected data was used as the research design with a case study of two selected countries – South Korea and Kenya. Using one way ANOVA method, the hypothesis was rejected and using the Chi square test, three factual differences arose from the study: (1) the level of enforcement; (2) the language of IFRS; (3) the question of adoption and convergence. The conclusion of the study was that there are differences in IFRS adoption mechanism that has been attributed to cultural-political influences. This study finding shall contribute to financial reporting knowledge that will help to explain some reasons of powerful macroeconomic and cultural-political forces that continue to provide impetus to globalization and use of IFRS.Item The Nexus Between the Central Bank of Kenyaand Private Providers of Cryptocurrencies(The World Financial Review, 2022-08) Muthoka, Dorothy MutanuCryptocurrencies ride on blockchain, a disruptive technology in the world.The Kenyan government has been lagging behind in recognising their growthand proliferation. Yet, it can utilise the power of its technologicalinfrastructure to enhance the efficiency of these cryptocurrency payments.The innovation is becoming friendlier to law-enforcers than law-breakers.Item The Unintended Consequences of Applying IFRS Standards: Regulators’ Perceptions(Korean Accounting Review, 2016) Soon, Lee Jang; Jong, Sun Eun; Muthoka, Dorothy MutanuThis study focuses on the application of International Financial Reporting Standards (IFRS) on financial reporting of two countries (South Korea and Kenya). We investigate whether there are unintended consequences of applying mandatory accounting standards across countries. We adopted a cross-sectional research design using hand collected data for examining the Regulation’s accounting objectives of transparency and comparability. The Korean Accounting Standards Board (KASB), the Institute of Certified Public Accountants in Kenya (ICPAK) and the International Accounting Standard Board (IASB) Regulators were chosen for the study. The results show that there are unintended consequences especially with the way the IASB Regulator that has given discretion to national Regulators in the application of the IFRS Standards. Further, due to lack of vigorous IASB Regulator’s enforcement the application of mandatory accounting standards has brought about ‘small differences’ that can impair reported performances hence impeding the need of comparability and transparency. We give a specific recommendation that the Regulators need to debate further on the better ways of applying IFRS Standards.