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Shema, Jean Bosco
Publications (5 of 5) Show all publications
Shema, J. B. (2018). The adoption and implementation of International Financial Reporting Standards (IFRS) in Rwanda. (Doctoral dissertation). Jönköping: Jönköping University, Jönköping International Business School
Open this publication in new window or tab >>The adoption and implementation of International Financial Reporting Standards (IFRS) in Rwanda
2018 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Accounting has played a significant role in globalization through instruments like the International Accounting Standard Board (IASB), the International Federation of Accountants (IFAC) and the International Financial Reporting Standards (IFRS) which have harmonized global business practices. With the spread of globalization, the persistence of local realities has become a global issue. While IFRS has been adopted across the world, local contexts are impeding its smooth implementation.

This study investigates this phenomenon in the Rwandan context by discussing how IFRS has been adopted by commercial banks in Rwanda and in sub-Saharan African countries. In Rwanda, IFRS’ adoption was influenced by the country’s economic context (dire need for reconstruction), social context (Rwandans with different accounting traditions due to the conflict and the movement of people across the region and in the world and their returning to their home country) and the political context (colonial legacy and accounting initiatives of the independent African countries and Rwanda’s regional and international integration policies).

My findings suggest that the adoption of IFRS was done after intense preparations and its implementation was monitored as it was believed that these standards would catalyze the government’s economic development goals. The findings also show the bi-directional relationship between accounting and the environment in which it operates. While IRFS’ adoption was swayed by the prevailing environment these standards also formed a part of the country’s strategy for economic development and a mechanism for promoting equity among its citizens.

The findings also show that the professionalization of accounting was context bound and was influenced by the accounting environment in Rwanda and that professionalization contributed to conflict prevention and resolution among accounting practitioners. The study also shows that the government played a big role in the development of accounting as a profession.

Abstract [sv]

Redovisning har spelat en betydande roll i globaliseringen genom instrument som International Accounting Standard Board (IASB), International Federationen of Accountants (IFAC) och International Financial Reporting Standards (IFRS) vilka har harmoniserat global affärspraxis. Med spridningen av globalisering har beständigheten i lokala realiteter blivit en global fråga. Medan IFRS har införts över världen har den smidiga implementationen hämmats i lokala kontexter.

Denna studie undersöker detta fenomen i den ruandiska kontexten genom att diskutera hur IFRS har införts av affärsbanker i Ruanda och i afrikanska länder söder om Sahara. I Ruanda influerades IFRS-införandet av landets ekonomiska kontext (trängande behov av rekonstruktion), social kontext (ruandier med olika redovisningstraditioner beroende på konflikten och migrationen av folk över regionen och i världen och deras återvändande till sitt hemland) och den politiska kontexten (kolonialt arv och redovisningsinitiativ från självständiga afrikanska stater och Ruandas regionala och internationella intergrationspolicies).

Mina resultat indikerar att införandet av IFRS gjordes efter intensiva förberedelser och dess implementering övervakades eftersom man trodde att dessa standarder skulle katalysera regeringens ekonomiska utvecklingsmål. Resultaten visar också den dubbelriktade relationen mellan redovisning och den omgivning i vilken den verkar. Medan införandet av IFRS vacklade hos den rådande omgivningen, formade dessa standarder också en del av landets strategi för ekonomisk utveckling och en mekanism för att främja rättvisa bland dess medborgare.

Resultaten visar också att professionaliseringen av redovisning var kontextbundenoch påverkades av redovisningsmiljön i Ruanda och att professionalisering bidrog till attförhindra och lösa konflikter hos redovisningspraktiker. Studien visar också attregeringen spelade en stor roll i utvecklandet av redovisning som profession.

Place, publisher, year, edition, pages
Jönköping: Jönköping University, Jönköping International Business School, 2018. p. 33
Series
JIBS Dissertation Series, ISSN 1403-0470 ; 129
National Category
Business Administration
Identifiers
urn:nbn:se:hj:diva-42277 (URN)978-91-86345-91-4 (ISBN)
Public defence
2018-12-19, B1014, Jönköping International Business School, Jönköping, 13:15 (English)
Opponent
Supervisors
Available from: 2018-12-11 Created: 2018-12-11 Last updated: 2018-12-11Bibliographically approved
Shema, J. B.Comparison of IFRS and OHADA’s accounting quality.
Open this publication in new window or tab >>Comparison of IFRS and OHADA’s accounting quality
(English)Manuscript (preprint) (Other academic)
Abstract [en]

This paper compares the accounting quality of the International Financial Reporting Standards (IFRS) and the Organization for Harmonization of Businessin Africa (OHADA) standards. These accounting standards are primarily used in the French-Speaking sub-Saharan countries. Literature argues that OHADA standards blend the French-German and the Anglo-Saxon accounting traditions to meet the requirements of a reporting framework for a globalized economy and hence they are like IFRS. Using a casual-comparative research design and collecting data from commercial banks using these two types of accounting standards, this study finds that the quality of accounting differs in IFRS and OHADA in terms of earnings management and loan loss recognition. Commercial banks reporting under IFRS show indices of less earnings management and less conservatism as compared to those reporting under OHADA standards. This paper contributes to literature by quantitatively complementing existing qualitative research which has concluded that OHADA standards should come up with substantial revisions in their conceptual framework if they have to meet their objective of reporting the real economic activity of a firm.

Keywords
IFRS, OHADA, earnings management, loan loss recognition, accounting conservatism
National Category
Business Administration
Identifiers
urn:nbn:se:hj:diva-42276 (URN)
Available from: 2018-12-11 Created: 2018-12-11 Last updated: 2018-12-11Bibliographically approved
Shema, J. B.The development of accounting profession in Rwanda.
Open this publication in new window or tab >>The development of accounting profession in Rwanda
(English)Manuscript (preprint) (Other academic)
Abstract [en]

This study investigates the professionalization of accounting in Rwanda. Using a historical approach, it highlights the critical events that marked this process. The analysis is organized around key components of professionalization and professionalism including the identification triggers of professionalization, the path that professionalization in Rwanda followed, the stakeholders involved in the process and finally the nature of professionalism that resulted in professionalization. Its findings show that exogenous and endogenous reasons such as economic factors and conflict prevention and resolution played an important role in accounting professionalization in Rwanda. While in other contexts it has been observed that obtaining social acceptance has been a painstaking and competitive process which sometimes also involves inter and intra professional conflicts, the Rwandan case shows that social acceptance was semi-granted to accounting practitioners by the government leading to a win-win situation. The study also adds to literature by coining the concept of corporatism in transition as compared to the existing forms of corporatism like liberal corporatism and state corporatism (Unger and Chan, 1996). The Rwandan accounting environment contributed in shaping both the nature of social acceptance and corporatism in the sense that GoR needed an organized accounting profession to implement its economic policies. Hence, it engaged in funding the fledgling accounting profession but with plans to withdraw when the profession became self-sustainable.

Keywords
Corporatism, accounting profession, social closure, state-profession relationship, accounting traditions
National Category
Business Administration
Identifiers
urn:nbn:se:hj:diva-42275 (URN)
Available from: 2018-12-11 Created: 2018-12-11 Last updated: 2018-12-11Bibliographically approved
Shema, J. B.The history of accounting in Rwanda.
Open this publication in new window or tab >>The history of accounting in Rwanda
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Accounting history as a field of research has gone through a major paradigm shift from accounting research being seen as a technical device relevant for decision making to the conception of accounting research as a social practice. This has broadened its understanding and its scope of analysis. I use this widened scope to review the history of accounting in Rwanda which developed under the influenceof a specific context. Accounting history in Rwanda was marked by its colonial legacy, by the attempts of young independent African countries to have their own accounting standards, the disintegration of the accounting systems initiated by African independent states and by Rwanda’s political context. It was also influenced by a long-standing conflict, by its social context where Rwandans from different countries with different accounting traditions met and by its economic context including meeting donors’ requirements and most importantly the need for reconstruction of a devastated country because of longstanding conflicts and war. My findings highlight that IFRS’ adoption and implementation were foregrounded as the Government of Rwanda’s (GoR’s) strategy to spur its economic development and as a mechanism for social equity among its citizens who were then divided according to their accounting traditions. The development of accounting in Rwanda has also proven how bi-directional the relationship between accounting and the environment in which it operates is. Though IFRS’ adoption came amid internal pressures and lack of harmonized accounting standards and the need for economic development and external pressures from regional and international organizations, the need for reconstruction was paramount and subsumed the other factors that led to existing accounting practices in the country.

Keywords
Accounting history, colonial legacy, accounting standards, IFRS
National Category
Business Administration
Identifiers
urn:nbn:se:hj:diva-42273 (URN)
Available from: 2018-12-11 Created: 2018-12-11 Last updated: 2018-12-11Bibliographically approved
Shema, J. B. & Rimmel, G.The role of the governments in IFRS’ adoption and implementation: The case of Rwanda.
Open this publication in new window or tab >>The role of the governments in IFRS’ adoption and implementation: The case of Rwanda
(English)Manuscript (preprint) (Other academic)
Abstract [en]

This paper investigates the role played by the Government of Rwanda in the adoption and implementation of International Financial Reporting Standards (IFRS). It systematically analyzes interviews and archival data using a thematic content analysis. Its findings suggest that as a key stakeholder in IFRS’ adoption and implementation, the Government of Rwanda played an important role that made their adoption and implementation possible. The government’s role is articulated in a set of decisions and events that marshalled the overall process of IFRS’ adoption and implementation. The government also played a role in making rational choices about effective and efficient accounting standards and dedicating efforts in different activities related to IFRS’ adoption and implementation. The choices and actions undertaken (the decision to use IFRS instead of local standards or developing new accounting standards, the sense-making around IFRS’ adoption and implementation and availing the resources needed) were significant for the guidelines’ effective adoption and implementation. This paper contributes to literature as it provides an explanation of the role of the government in the adoption and implementation of IFRS, in marking out the steps in this and showing that IFRS’ adoption and implementation in Rwanda was a result of mature decision-making and not a result of pressures from regional or international partner organizations.

Keywords
International Financial Reporting Standards, government, IFRS adoption planning
National Category
Business Administration
Identifiers
urn:nbn:se:hj:diva-42274 (URN)
Available from: 2018-12-11 Created: 2018-12-11 Last updated: 2018-12-11Bibliographically approved
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