IFRS 7 COMPLIANCE AMONG ETHIOPIAN COMMERCIAL BANKS: AN EMPIRICAL ANALYSIS

AUTHORS: BERSUFEKAD ZENA DEBELE, Dr. Ravi Kanth Makarla

ABSTRACT:The objective of the study is to investigate the level of compliance with IFRS7amongcommercial banks of Ethiopia. Review of literature reveals that past studies have been conducted on the challenges and opportunities of IFRS in Ethiopia. But on IFRS-7 specifically, not much focus is been given by researchers in the .the secondary data was obtained from the five years (2016-2019) annual reports of commercial banks of Ethiopia. The method of data analysis of the study was content analysis with the help of the IFRS-7 compliance checklist which was adopted from the previous studies. The study's findings show that commercial banks' financial risk disclosure practices, which include credit risk, liquidity risk, and market risk, have improved significantly since the introduction of IFRS7 in Ethiopia. The studies suggested that Investors, accountants, and auditors can get sufficient information about the financial risks of commercial banks of Ethiopia by looking at their annual reports.