Strategies to Reduce Excessive Transition Costs to the International Financial Reporting Standards

Strategies to Reduce Excessive Transition Costs to the International Financial Reporting Standards by Mohammad Abuarqoub MAFM/CPA, DeVry University, 2013 BBA/A, Yarmouk University, 1984 The Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University February 2018 Abstract The excessive cost of the transitioning from the Generally Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards (IFRS) is a vital business challenge. Based on the transaction cost economics (TCE) theory, the purpose of this qualitative single case study was to explore strategies that some of the organizational financial professionals use to minimize excessive transition costs from GAAP to IFRS accounting systems. Data were collected from 3 financial professionals of a corporation located in the west coast region of Northern California using semistructured interviews, besides reviewed public records, and studies of developed countries that adopted IFRS. Using the thematic analysis approach, 4 themes emerged, (a) strategic planning and strategy, (b) strategies formulation, implementation, and evaluation, (c) contract negotiation and enforcement, and (d) information system and project cost. The findings of this study could add practical knowledge of focused and consistent actions to IFRS adoption strategies, which could give priority to reducing the costs of the transaction from implementing GAAP to IFRS in local firms’ financial reporting. The implications for positive social changes could include the potential to enhance knowledge of financial reporting, motivate investments, increase economicThe excessive cost of the transitioning from the Generally Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards (IFRS) is a vital business challenge. Based on the transaction cost economics (TCE) theory, the purpose of this qualitative single case study was to explore strategies that some of the organizational financial professionals use to minimize excessive transition costs from GAAP to IFRS accounting systems. Data were collected from 3 financial professionals of a corporation located in the west coast region of Northern California using semistructured interviews, besides reviewed public records, and studies of developed countries that adopted IFRS. Using the thematic analysis approach, 4 themes emerged, (a) strategic planning and strategy, (b) strategies formulation, implementation, and evaluation, (c) contract negotiation and enforcement, and (d) information system and project cost. The findings of this study could add practical knowledge of focused and consistent actions to IFRS adoption strategies, which could give priority to reducing the costs of the transaction from implementing GAAP to IFRS in local firms’ financial reporting. The implications for positive social changes could include the potential to enhance knowledge of financial reporting, motivate investments, increase economic resources, and improve local employment growth. Strategies to Reduce Excessive Transition Costs to the International Financial Reporting Standards by Mohammad Abuarqoub MAFM/CPA, DeVry University, 2013 BBA/A, Yarmouk University, 1984 The Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University February 2018 Dedication I wish to dedicate my doctoral study and achievements to my God, family, and friends who have supported me during my challenging journey. Thank God for the great blessing. My appreciation and dedication to Almarhoom my dad, my mom, my wife, and my children: Yousef, Odai, Loai, and Habibati Moroug, who have been my source of encouragement throughout the process of completing the research of my doctoral study. Thank you all for your patient, sacrifice, and flexibility. You are my best. Hope I can help you to achieve your dreams. Besides, my dedication to the community, friends, classmates, and work colleges for assisting me to achieve my goals. Acknowledgments I am always grateful to God for helping me to accomplish my doctoral degree dream. I would like to acknowledge Professor Steve Roussas, who served as my Faculty Mentor who contributed to my completion of the doctoral program. As a Committee Chair, Dr. Roussas lightened my way during this challenging journey. Dr. Steve guidance and words of encouragement were essential factors in my magnificent achievement of my doctoral study. I wish to acknowledge Dr. Beverly Carolann Muhammad as Committee Member for her great recommendations, assistance in the research, and her contribution that enabled me to complete my doctoral project. Many thanks to the Committee University Research Reviewer Dr. Peter John Anthony, the Methodologist Dr. Douglas Campbell, and Program Director Dr. Susan Davis, for their efforts and support. Also, I would like to thank my research partner corporation participants as well as all my friends who supported me, especially my LinkedIn network. I always appreciate your time and efforts.