Abstract
As countries broaden their economic activities with a more global perspective, there is a growing consensus that an international accounting standard is necessary to meet the needs and expectations of global stakeholders. Bhutan, like many developing nations aiming to enhance the transparency and comparability of financial statements, adopted the International Financial Reporting Standards (IFRS) in 2012. This shift from the absence of a formal accounting standard aims to boost their credibility and attract international investment.This thesis investigates Bhutan’s journey through this significant transition. It explores the considerable benefits and challenges encountered by Bhutan in incorporating IFRS and fair value accounting (FVA) within its financial institutions. This thesis applies a critical interpretivist approach, employing Merriam’s (1998) single case study method and a narrative analysis technique. This research utilised open-ended, focused interviews with key stakeholders, including standard-setters, regulators, implementers, auditors, and investors, in conjunction with document analysis, to attain a nuanced understanding of their subjective experiences and perceptions concerning the implementation processes of IFRS and FVA.
The results reveal practical challenges for stakeholders arising from Bhutan’s distinctive economic, social, regulatory, and cultural contexts. The thesis analyses the impediments to implementing FVA in Bhutan, such as the scarcity of qualified professionals, the absence of an active market, inconsistencies in data availability, and technological deficiencies. The study emphasises the necessity of situating IFRS within the distinct economic, cultural, and social context of the implementing country to ensure that it produces significant benefits, particularly when there is a lack of alignment with the pre-existing infrastructure, specifically the regulatory environment, technological capabilities, and the perceptions of the stakeholders involved.
While recognising its limitations, including the focus on a singular nation and the potential biases inherent in qualitative data, this study offers valuable insights into the complexities and strategies relevant to the effective adoption of IFRS in emerging economies. The findings contribute to a deeper understanding of how Bhutan can adeptly navigate the complexities of financial reporting standards in a manner consistent with its unique national ethos and developmental objectives. Additionally, it provides insight that countries with comparable economic, social, and cultural frameworks ought to thoroughly contemplate before adopting IFRS.
| Date of Award | 2025 |
|---|---|
| Original language | English |
| Supervisor | Bomikazi ZEKA (Supervisor) & David CARTER (Supervisor) |