Abstract
This chapter investigates the level to which International Financial Reporting Standards (IFRS) have been adopted in Rwanda, the challenges faced in their adoption, and the effect of the adoption on capital market development in the country. Primary data were collected using a self-administered questionnaire issued to two respondents from the surveyed companies using a stratified sample of 63 companies. In total, 126 responses were received. The data were analyzed with the help of SPSS. Pearson’s correlation coefficient helped measure the level of IFRS adoption and challanges faced in adopting IFRS for the Rwandan Stock Exchange (RSE) . A regression analysis was used to measure the strength of the relationship between IFRS adoption and the level of capital market development. The findings show that there is a positive and significant relationship between IFRS adoption and capital market development in Rwanda. This implies that as companies implement IFRS in their financial reporting, there is the likelihood of capital market development. Challenges such as a lack of professional qualified accountants and IFRS adoption guides are the main hindrances for IFRS adoption in Rwanda.
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Ndagijimana, I.B., Barayandema, J. (2017). International Financial Reporting Standards and the Capital Market in Rwanda. In: Achtenhagen, L., Brundin, E. (eds) Management Challenges in Different Types of African Firms. Frontiers in African Business Research. Springer, Singapore. https://doi.org/10.1007/978-981-10-4536-3_8
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