ISSN: 2222-6990
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There is a dire need to investigate the readiness, challenges, and obstacles faced by adopting the International Financial Reporting Standards (IFRS) in Timor-Leste. Being a country that obtained its independence not too long ago, it is in a slow but steady position to put in place many requirements. This has prompted the authors to investigate the adoption status of the IFRS by the companies operating in Timor-Leste and the challenges faced in adopting IFRS. Studies on adopting IFRS, especially in underdeveloped and developing countries, have identified several factors, including the regulatory environment, resource availability, and accounting professionals' education and training levels. This study was conducted using an online survey via social media. One hundred and seventeen respondents participated in the survey by providing valuable feedback via the options given to them through a five-point Likert scale. This study discovered that while some Timor-Leste companies have made significant progress in adopting IFRS, many others need help comprehending and putting the standards into practice. The findings, amongst others, noted some obstacles Timor-Leste businesses face in adopting the IFRS, such as restricted access to resources for training and education, lack of knowledge and experience on the comprehension of the standards and the existence of inconsistent regulations. These difficulties have been found to delay the adoption process of the IFRS, which has impacted the nation's financial reporting quality.
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