AN EMPIRICAL STUDY ON THE INFLUENCE OF IFRS AND REGULATIONS ON THE QUALITY OF FINANCIAL REPORTING OF LISTED COMPANIES IN A DEVELOPING COUNTRY

摘要

This research sought to establish if International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and regulations in Zimbabwe have been associated with increased financial reporting quality for listed companies. The study adopted mixed research approach. Questionnaires and unstructured interviews were used as research instruments to collect primary data. Content analysis was also adopted to triangulate the results. Target population was the listed companies in Zimbabwe. The study found a significant negative relationship between voluntary adoption of IFRS and earnings management of listed companies in Zimbabwe. The negative relationship may indicate that IFRS does not promote earnings management for voluntary adopters, thereby implying an increased financial reporting quality. It is recommended that top management, external auditors and regulators being the key players in standards, should work together and tighten compliance so that impact of IFRS could be felt more.