Journal of International Education in Business

Factors influencing adoption of the international financial reporting standards (IFRS) in accounting
education
Abdulaziz Alzeban
Article information:
To cite this document:
Abdulaziz Alzeban , (2016),"Factors influencing adoption of the international financial reporting standards (IFRS) in
accounting education", Journal of International Education in Business, Vol. 9 Iss 1 pp. -
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http://dx.doi.org/10.1108/JIEB-10-2015-0023
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 Factors Influencing Adoption of the International Financial Reporting Standards (IFRS) in
Accounting Education

Keywords: IFRS, transition to IFRS, accounting education, IFRS in Saudi Arabia

1. INTRODUCTION
Using the perceptions of instructors, this study examines the implementation of International
Financial Reporting Standards (IFRS) in Saudi undergraduate accounting courses. In doing so, it
explores how certain factors (e.g. instructor’s attitude, size of accounting department, teaching
load, type of institution, teaching experience, and teaching materials) influence the incorporation
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of IFRS material into accounting curriculum, and the challenges encountered in teaching it. This
investigation is in light of a global shift toward replacing the Generally Accepted Accounting
Principles (GAAP), and the possible implications that this move could have for accounting
education.

Prior research has examined IFRS transition and its implications for accounting education (e.g.
Chiang, 2013; Hilton & Johnstone, 2013; Jackling, 2013; Stoner & Sangster, 2013; Vysotskaya
& Prokofieva, 2013; Jackling et al., 2012; Turner et al., 2011; Wells, 2011; Zhu et al., 2011;
Munter & Reckers, 2010). Hilton and Johnstone (2013) indicate that the move to IFRS prompted
Canadian accounting lecturers to re-examine their teaching approaches and curriculum content,
such that they began a focus on teaching in a conceptual manner, and embraced the formal
teaching of professionalism throughout the entire accounting curriculum. Given the compatibility
between IFRS and Canada’s previous standards (i.e. GAAP), there were no revolutionary
changes, and the new directions pursued by these lecturers resulted in more effective accounting
education.

Zhu et al. (2011) found that there is likely to be more extensive coverage of IFRS topics when
teachers appreciated the high degree of convergence between IFRS and the American version of
GAAP, as well as when colleagues were involved in teaching IFRS. Conversely, when IFRS
materials (e.g. textbooks) are deemed insufficient, instructors are less likely to cover IFRS in a
meaningful way. With the exception of Zhu et al. no empirical research has examined the impact
of the aforementioned factors on the inclusion of IFRS in accounting curricula. This marks a

1
 shortcoming in the literature, and is an impetus for this study, as there is a clear need to
contribute to the existing knowledge of what factors might influence the adoption of IFRS
materials, by conducting an empirical study.

The present study employs a regression model to determine the significance of various factors,
and explores the perceptions held accounting instructors. A traditional Higher Education (HE)
environment in an Islamic culture provides the context for this study; thus, its implications are
not only applicable to Saudi Arabia specifically, but potentially to Arab, and Middle Eastern
countries in general.
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In this respect, it is seen that Saudi Arabia provides a unique environment in which to study the
incorporation of IFRS materials into the accounting curriculum since whilst being considered as
a developing country, it does not suffer from some of the problems experienced by other
developing countries such as poverty, as it possesses the world’s largest oil reserves. The
Kingdom has potential to become a major figure in the global economy, and in spearheading
changes to HE curricula, can possibly affect other Arabic-speaking nations. Moreover, a study in
this cultural setting can provide clarity regarding factors that influence initiatives to change
accounting curricula.

In addition to extending the extant knowledge in the area, the study’s findings also reveal the
implications of the factors identified as important for the successful adoption of IFRS materials
in countries where the curriculum is delivered in a language other than English. Specifically, the
use of Arabic brings the requirement for new materials which are not readily available as is the
situation in other societies, such as those in the West where such materials are already developed
and accessible.

Furthermore, the paper provides insight regarding factors that influence decisions by educators to
voluntarily enhance their curriculum by reflecting uncertain changes with the potential to have a
major impact on accounting practice.

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 This entails, among other things, examining the amount of time an instructor dedicates to the
inclusion of IFRS during a given semester. It is argued in the study that several factors (e.g.
instructor’s attitude, size of accounting department, teaching load, type of institution, teaching
experience, and teaching materials) influence the time allotted on IFRS materials on accounting
courses. Hypotheses are subsequently presented concerning the impact of these factors on the
number of hours dedicated to IFRS.

The fundamental justification for the hypotheses advanced within the study is the belief that a
higher number of hours spent on IFRS materials in accounting courses results from a positive
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instructor attitude and better teaching experience. Regression models will be employed to test the
hypotheses using data gathered from 46 faculty members. Several other influential factors are
examined (e.g. institutional and faculty characteristics), as well as practical barriers that can
affect the extent to which educators cover IFRS. Understanding these factors is of particular
interest to faculty members who wish to create an environment conducive to teaching IFRS.

2. ACCOUNTING REGULATIONS IN SAUDI ARABIA

The Saudi Organisation for Certified Public Accountants (SOCPA) is a professional organisation
established under Royal Decree No. M12 in 1991. The brief of the SOCPA is to promote the
accounting and auditing profession with a view to enhancing its status, and it is supervised by the
Ministry of Commerce. In discharging its duties, the SOCPA has approved an IFRS convergence
plan requiring all listed entities, with the exception of banks and insurance companies, to report
using modified IFRSs. The IFRS transition project began in 2012 and is anticipated to be
completed in 2017, having the stated goal of effecting a complete transition to IFRSs provided
they have been properly evaluated as being appropriate for the Saudi environment. This
evaluation is being conducted through SOCPA’s independent standard-setting procedure.
Currently, the Saudi Arabian Monetary Authority (SAMA) requires all banks and insurance
companies to use IFRSs, and this applies both to listed and unlisted banks, and insurance
companies.

Since the transition to IFRS is expected to be completed by 2017, SOCPA has been in
communication with the Ministry of Higher Education requesting the inclusion of several

3
 standards in all university accounting curricula. Specifically, these are the International
Education Standards (IESs) for professional accountants, and other International Accounting
Education Standards Board (IAESB) pronouncements. And all Accounting, Auditing, Ethics, and
Quality Control curricula are included in the plan. Indeed, the belief by SOCPA is that with such
action, it would be possible to change to the International Standards by 2017 as graduates would
be prepared by that time. Interestingly, however, as highlighted by AlMotairy and Stainbank
(2014), the universities in Saudi Arabia exercise freedom in determining their accounting curricula
and are not bound by any recommendations from the SOCPA.
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3. OVERVIEW OF TEACHING IFRS AND RESEARCH HYPOTHESES

Over 120 countries have either moved to the adoption of IFRS or are currently doing so, in their
attempts to facilitate their global financial reporting (Jackling, 2013). Hence, some reflection on
how accounting educators are affected by this ongoing switch is both appropriate and timely.
From the perspective of educators, it is imperative that they themselves develop expertise in their
understanding of IFRS and their ability to apply them; equally, in terms of their educative roles,
it is vital that they ensure that their teaching includes the transmission of IFRS principles.

Given the variations in readiness among nations for the change from GAPP to IFRS, and the
differences in the entrance routes to the accounting profession (Karreman, 2002), it is
worthwhile considering the main obstacles to the adoption of IFRS-informed accounting
education in different educational systems, and this paper contributes to that discussion by
specifically highlighting the Saudi Arabian context. In this connection, the move is from the
local GAAP (issued by SOCPA) to IFRS, and the focus is on higher education institutions.

However, from a general viewpoint, it can be seen that the characteristics of the change in
process vary from one country to another as nations around the world are in different
developmental stages. In some countries, for instance, the national GAAP have been firmly
established1 for a long time and sophisticated mechanisms have been in place to encourage
adherence to these. However, in other countries, such principles have not been well developed,

1
Following the Stock Market Crash of 1929, the American Accountants Institute issued five broad principles
intended to improve accounting practices, which laid the foundation for the America version of GAAP.

4
 and as noted by Jackling et al. (2012), financial reporting systems have been focused on the
regulatory framework surrounding taxation at the expense of providing information for investors.
Furthermore, substantial differences may be evident between the local GAAP and IFRS even in
those jurisdictions where the national GAAP have been well developed.

Literature concerning the preparedness of academics in the United States for teaching IFRS
derives from the results of the Annual Surveys of Accounting Faculty conducted each year since
2008 by the American Accounting Association (AAA), and KPMG (KPMG and AAA, 2011).
These surveys show for example, that in 2008, of 535 academics surveyed, 79% considered the
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development of teaching materials related to IFRS as highly challenging, and 72% described the
process of including the teaching of IFRS within the curriculum also as highly challenging
(Munter & Reckers 2009).

Such challenges emerge from the presence of a number of factors that discourage the extensive
coverage of IFRS by accounting instructors. One such factor is resistance to change by teachers,
fuelled by anxieties concerning the potential effect of IFRS on students’ overall education, even
when improved teaching materials and incentives are provided for teachers (Libby, 1991). And
particularly in relation to International Accounting education, it has been found that teachers’
attitudes are influenced by the extent of internationalisation already reflected in the
undergraduate accounting curriculum (Cohen et al., 1991). More recently, Mayhew and
Grunwald (2006) demonstrate from an empirical study, that teachers’ decisions to include
diversity-related teaching materials in their classrooms are associated with their personal
opinions about diversity. And again in the US context, Rezaee et al. (2010) find that both
academics and practitioners are resistant to the move because they are familiar with the US
GAAP and see no need for the change. It has been pointed out by Rezaee et al. (2010) that the
US GAAP have been in use for many years and that both educators and practitioners may be
resistant to switching to new standards because they are comfortable with the existing ones, and
see the introduction of new ones as requiring additional learning on their part.

Based on the discussion thus far, it can be argued that instructors’ attitude and resistance to
change has an impact on the time that an instructor spends during the academic semester on

5
 teaching IFRS material in accounting courses, and therefore, the following hypothesis is
formulated:

H1: The instructor’s attitude is positively associated with the time spent during the
semester on teaching IFRS.

In addition to resistant attitudes from individual teaching staff, there are also institutional factors
that have a bearing on the level of IFRS incorporation within the accounting curriculum.
Groomer and Heintz (1994) have noted for example, that institutional size influences course
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provision (in particular whether advanced auditing courses can be provided), and whether
instructors can use cases for their teaching (Libby, 1991). A small college for instance, is
insufficiently resourced to launch advanced auditing courses, and even in organisations where
such provision is in evidence, there may be resource restrictions precluding staff from teaching
via the case study approach. Moreover, in subsequent research also involving (Groomer and
Murthy, 1996), variables such as size of department, type of institution (whether public or
private), and the number of teaching staff in the department, have been found to have an effect
on whether the curriculum can be expanded or developed to incorporate the teaching of new
standards, again primarily fuelled by the availability of resources which allow the switch to a
curriculum with a different focus. Any such switch must have a ripple effect on other aspects of
the curriculum, meaning the inclusion of IFRS cannot be done simply by one small change.
Hence other dimensions of the curriculum may change, involving effort on the part of others in
the process, and if the number of staff in a department is low or they are already stretched to
capacity, such change may not be able to be accommodated. To these factors, Dow and Feldman
(1997) add teaching load, and class size, mentioning that these may encourage or preclude their
ability to use cases in Intermediate Accounting classes. Clearly, in order to properly explore a
case, small group numbers are required, and where accounting education is delivered in lecture
situations, the type of concentration on particular cases that the delivery of IFRS demands, is not
possible. Furthermore, cases take time to develop and where teaching loads are already high, this
is not available. Alvarez et al. (2009) also point to the fact that time constraints prevent them
from including extra content in their syllabuses.

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 Thus, it can be argued that institutional factors (size of department, teaching load, and type of
institution) have an impact on the time spent by an instructor during the academic semester to
teach IFRS material on accounting courses, and therefore, the following hypotheses are
presented:

H2: The size of the accounting department is positively associated with the time spent
during the semester on teaching IFRS.
H3: The teaching load is positively associated with the time spent during the semester on
teaching IFRS.
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H4: The type of institution is positively associated with the time spent during the semester
on teaching IFRS.

The individual characteristics of teaching staff are also known to influence curriculum content as
noted by Stark and Lattuca (1997), who comment on the fact that teachers are themselves the
main producers of academic plans. And especially in connection with accounting studies, it is
argued by Watson et al. (2007) that professional experience has a strong bearing on how courses
are delivered, and by Dow and Feldmann (1997) that teachers with doctorates and high
expectations of undertaking research tend to adopt cases as teaching material in Intermediate
Accounting classes. Likewise, Groomer and Murthy (1996) found a link between instructors’
teaching experience, research interests, and training, and the content of the courses they
delivered. And Mounce et al. (2004) point to the industrial experience of teachers as being a
benchmark by which students assess their quality. Given these observations, it can be expected
that teaching experience influences the time an instructor spends during the academic semester to
teach IFRS material on accounting courses, and hence, the following hypothesis is posed:

H5: Teaching experience is positively associated with the time spent during the semester on
teaching IFRS.

It is accepted that the resources to underpin a swift and comprehensive change of accounting
programmes to incorporate the teaching of IFRS are simply not in place and that for the

7
 academic community to embark upon such curriculum change will be a difficult task (Munter &
Reckers 2009).

Specifically, the barriers to the introduction of IFRS lie in the shortage of appropriately qualified
lecturers (Munter & Reckers, 2009; Zhu et al., 2011), no opportunities or vehicles for retraining
existing staff such that they are capable of delivering a curriculum incorporating IFRS,
competition from other areas for new curriculum content, and the absence of teaching materials
from the educational institutions themselves, and publishers of textbooks in general (Munter &
Reckers, 2009). On the issue of insufficient staff and teaching materials, Zhu et al. (2011) warn
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that the internationalisation of the accounting curriculum is impeded by inappropriately qualified

teaching staff and insufficient textbooks. And Kroll (2009) notes the limited discussion of IFRS
both in Principles of Accounting, and in Intermediate Accounting textbooks, stressing the need
for teachers either to produce their own materials or spend much time collecting materials from
other sources, such as public accounting firms.

In fact, one key challenge in IFRS education is reported by the second annual KPMG-AAA
Faculty Survey performed during July and August 2009, as the requirement to develop course
materials (Munter & Reckers, 2009). It is observed by Mayhew and Grunwald (2006) that
instructors who attend various forms of diversity training (seminars, workshops, conferences,
etc.) tend to include diversity-related material in their teaching, thereby confirming that
instructors feel more comfortable in doing this when they themselves believe they have a certain
level of knowledge and expertise in the area.

However, staff shortages arising from insufficient numbers of graduates from doctoral
programmes to satisfy the teaching demands, are envisaged to become worse (Munter &
Reckers, 2009), pointing to the genuine problem of inadequate resource provision to allow for a
wholesale curriculum revision to meet the urgent need, since staff who are stretched are unable
to find time to generate new material.

Indeed, there are also urgent needs to include more coverage of ethics, predictive modelling
techniques, forensic auditing, expanded coverage of internal controls and technology, so the

8
 issue of including IFRS in accounting curricula is by no means straightforward (Munter &
Reckers (2009).

The pressure placed on staff members to merely contemplate these proposed changes is
immense. Moreover, the availability of IFRS teaching materials dictates the amount of time that
instructors can dedicate to teaching IFRS. Thus, the following hypothesis is posed:

H6: Teaching material is positively associated with the time spent during the semester on
teaching IFRS.
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Clearly, if lecturers are expected to generate new course content and associated materials, they
must be capable of doing that, yet a problem has already been mentioned in that respect, since
whilst there is an unquestionable need for retraining, there is no mechanism for that to take place.
In order to achieve a genuine and thorough appreciation of IFRS, an enormous co-ordinated
approach involving both academics and industry is required, and no strategy for such an effort
has yet been devised (Munter & Reckers, 2009).

Munter and Reckers (2009), found in their study, that lecturers believe their retraining will take
place via their own efforts with the help of textbook authors and publishers, but there is no
evidence to suggest that any publications, even if produced in a timely manner, would make any
genuine contribution towards training.

4. RESEARCH METHODS
Using mixed research methods, data was collected via a questionnaire directed at faculty
members teaching accounting courses in Saudi Arabian universities, and five interviews
conducted with accounting faculty members from four universities. The questionnaire was
administered electronically, being e-mailed to addresses listed in the faculty directory of the
accounting department. Initially, 28 institutions with accounting programmes were identified,
and those institutions’ online directories were used to obtain contact e-mail addresses for each

9
 lecturer. Nine2 out of 28 universities (32% response rate on university basis) were represented.
There were 46 faculty members were obtained (45% response rate).

The primary purpose of the questionnaire was to obtain respondents’ perceptions of six factors
(instructor’s attitude, size of accounting department, teaching load, type of institution, teaching
experience, and teaching materials) and their impact on the time spent by faculty members on
teaching IFRS materials on accounting courses. The survey contained requested information on:
respondent’s background (Table 1), background of the accounting department (e.g. size, teaching
load, experience), knowledge of IFRS, IFRS education, time spent on teaching IFRS, the extent
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of support for the teaching of IFRS, and obstacles facing the incorporation of IFRS in the
curriculum. Main items included in the questionnaire are presented in appendix A.

Table 1: Respondents Demographics

Professors 11
Associate professors 19
Assistant professors 16
Ph.D. holders 46
Professional Qualification None
Work experience
1 - 5 years 16
6 - 10 years 19
11 - 15 years 5
15 + years 6

Additionally, semi-structured 30 – 70 minutes interviews were conducted with five accounting

faculty members. Questions of the interviews covered the objectives of the study and main
aspects related to teaching IFRS, incorporation of IFRS material within the accounting
curriculum, main obstacles influencing the adoption of IFRS in the accounting curriculum.
Although some of the questions were the same for all interviewees, there were a number of
questions that were different as interviewees were given the chance to raise any issues that were
of interest to them. Giving the importance of the time of the interviewees, an appointment was
made with each interviewee before conducting the interview to ensure the convenient time for
them, and they are ready for the meeting. The interviews were restricted to the five big

2
Two institutions of the nine are private, four universities out of the nine are considered new institutions as they
were established in the last 12 years. From the nine universities, there are two using teaching materials in English
materials, three using both English and Arabic languages, and four using Arabic.

10
 universities (in terms of number of faculty members in the universities and number of students
enrolled in the university).

Model
This study followed previous studies (e.g. Beasley et al., 2005), and estimated the following
regression model to examine the impact of the six previously mentioned factors on the amount of
time spent by faculty members to cover IFRS topics in accounting courses.

TIME = b0 + b1 ATTITUDE + b2 SIZE + b3 LOAD + b4 TYPE + b5 EXPERIENCE

+ b6 MATERIALS + ei
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Where:
TIME = amount of time dedicated to teaching IFRS
ATTITUDE = attitude toward including IFRS in accounting curricula
SIZE = number of faculty members in a given accounting department
LOAD = number of teaching hours
TYPE = public university (1) or private university (2)
EXPERIENCE = experience teaching accounting
MATERIALS = adequacy and availability of IFRS teaching materials: unavailable (0),
(1) available, and (2) adequate available).

5. RESULTS
Table 2 presents the descriptive statistics of the responses of faculty members, indicating the
very short time (average score of 9.4 minutes) faculty members spend on teaching IFRS
materials, and the fact that accounting instructors consider the inclusion of IFRS materials in
their courses to be unimportant (on average 1.1). The results also show the lack of availability of
IFRS materials (.6 mean score), an outcome which is not surprising as most accounting
departments still teach accounting in Arabic, and even those teaching in English use multi-
language (Arabic and English) in teaching. Moreover, the results indicate low familiarity with
IFRS (average .4) which can be seen in the small number of training events/workshops attended
by instructors (average .39). This outcome was expected since participants received little support
from their superiors in updating curricula to include IFRS, a finding that was mirrored in the
interviews.

Table 2: Participants’ Descriptive Statistics

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 _____________________________________________________________________
Variables Minimum Maximum Mean S.D.
_____________________________________________________________________
1-TIME (minutes) 0 30 9.4 .67
2-ATTITUDE 1 3 1.1 .82
3-SIZE 5 25 11.8 1.2
4-LOAD 3 18 10.4 .73
5-EXPERIENCE (years) 3 32 15.7 1.3
6-MATERIALS 0 1 .6 .54
7-SUPPORTIVE 0 1 .4 .51
8-FAMILIARITY 0 1 .4 .58
9-TRAINGING 0 1 .39 .61
_____________________________________________________________________
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1-TIME: amount of time dedicated to teaching IFRS

2-ATTITUDE: attitude towards including IFRS in accounting curriculum
3-SIZE: number of faculty members in a given accounting department
4-LOAD: number of teaching hours
5-EXPERIENCE: experience teaching accounting
6-MATERIALS: adequacy and availability of IFRS teaching materials: unavailable (0), available
(1), adequate available (2)
7-SUPPORTIVE: department head is supportive of initiatives to update accounting curricula to
include IFRS: unsupportive (0), supportive (1), strongly supportive (2)
8-FAMILIARITY: familiarity with IFRS: unfamiliar (0), familiar (1), very familiar (2)
9-TRAINING: attendance of IFRS-related workshops/seminars: none (0), few (1), some (2),
many (3).

Table 3 presents the perceptions of instructors concerning the factors influencing the adoption of
IFRS in the accounting curriculum and the actual teaching of IFRS (a five-point Likert scale, 1 =
strongly disagree and 5 = strongly agree). As it can be seen in Table 3, the perceptions of the
instructors are that cultural challenges and resistance to change represent the main factors
influencing the adoption of IFRS in accounting materials (4.6), and that insufficient teaching
materials (4.4) come a close second. Furthermore, instructors are more likely to agree with the
third statement (average 3.9) – which is indicative of perceptions that instructors are not
receiving sufficient training or being given the opportunity to attend workshops. It also indicates
that faculty has been given limited training opportunities or they need to participate in training
programs by their own.

Table 3: Instructors Perceptions as of Factors that Influence the Adoption of IFRS

Items Mean SD

1- Institutional factors (e.g. size of school, size of the accounting 3.6 .55
department, teaching load, and class size)

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 2- Lack of teaching experience 3.1 .65
3- Lack of training to IFRS 3.9 .5
4- Lack of familiarity with IFRS 2.5 .86
5- Challenge to developing curriculum materials for IFRS 3.9 .52
6- Students do not have interests to learn about IFRS 3.4 .58
7- Insufficient teaching materials available (e.g. textbooks). 4.4 .56
8- Cultural challenges / resistance to change. 4.6 .4
9- Lack of research interests 3.1 .72

Table 4 presents the results of the correlation between TIME (dependent variable) and six
independent variables and their levels of significance. The results show that a positive correlation
exists between TIME and all the six independent variables. Additionally, the results reveal that
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four variables (ATTITUDE, SIZE, TYPE, and MATERIALS) are significantly correlated with
the dependent variable at p < .01, and LOAD at p < 05 whereas EXPERIENCE is positively
correlated but not significant p > .05 – giving the results which are in line with previous research
(e.g. Zhu et al., 2011; Alvarez et al., 2009; Mayhew & Grunwald, 2006).

Table 4: Correlation between Variables

________________________________________________________________

1 2 3 4 5 6 7

1. TIME 1.00
2. ATTITUDE .62** 1.00
3. SIZE .41** .16 1.00
4. LOAD .23* -.20 -.33** 1.00
5. TYPE .49** .22* .13 -.15 1.00
6. EXPERIENCE .19 .64** .17 -.36** -.17 1.00
7. MATERIALS .61** .52** -.03 .11 .37** .18 1.00
_____________________________________________________________________________
*Correlation is significant at the 0.05 level
**Correlation is significant at the 0.01 level

Table 5 reports the regression results, with TIME as the dependent variable. The results indicated
that the overall model is significant at p < .01, with an adjusted R2 of .39. For our test variables,
the coefficient on ATTITUDE shows a significant positive association p < .01 (supporting H1)
suggesting that instructors’ decisions to want to spend more time on teaching IFRS and on
including diversity-related teaching materials in their classrooms are associated with their
personal opinions, bearing in mind, however, that several factors preclude their efforts to actually
teach IFRS (resource constraints).

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 Table 5: Regression Results
______________________________________________________________________________
Variable
β. t Sig.
______________________________________________________________________________
ATTITUDE .363 4.698 .000
SIZE .197 2.620 .033
LOAD .163 1.966 .053
TYPE .277 2.781 .007
EXPERIENCE .062 .702 .485
MATERIALS .320 3.682 .000
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R2 = .41
Adjusted R2 = .39
F = 20.642
P < .01
______________________________________________________________________________

Further, results suggest that ATTITUDE, among other independent variables, contributed the
most to TIME (β = .363). The coefficient of SIZE is positive and significant at (p < .05)
providing support for H2, whereas LOAD is positively associated with TIME, but not significant
(p > .05) (does not provide support for H3). The regression results show a positive and
significant association between TYPE of institutions (public or private) and the TIME instructors
spend on teaching IFRS materials at (p < .01), thereby providing support for H4. However, the
results demonstrate a positive association but not significant (p > .05) one between TIME and
teaching experience EXPERIENCE, thus not supporting H5. This result indicates consistency
with the first argument (mentioned previously), suggesting that staff who were approaching
retirement saw no point in re-educating themselves in order to teach IFRS, and as of the time of
the survey, there were no imperatives from their universities for them to do this. Clearly, given
the choice, those whose future in teaching did not depend upon their ability to teach IFRS would
opt to retain the status quo, but if a mandate to incorporate IFRS within the curriculum were in
existence, this might be a different story.

Moreover, results reveal a significant association between TIME and the availability of IFRS
teaching materials (MATERIALS) (p < .01), thus supporting H6. A positive coefficient indicates

14
 that the relationship is as predicted, whereby the more IFRS teaching materials available, the
higher the time instructors spend on teaching IFRS.

Further Analysis
To re-examine the sensitivity of the results, non-significant variables were excluded, and four
other variables were added: SUPPORTIVE, FAMILIARITY, TRAINING, and EXPERIENCE
(refer to the legend in Table 2 for an explanation of each). The results3 were robust and the
model was significant (p < .01), with an adjusted R2 of .56, thus suggesting that the
aforementioned variables play a complementary role in increasing the amount of time instructors
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dedicate to implementing and/or teaching IFRS. Furthermore, these results indicate that
instructors might dedicate more time to teaching IFRS if accounting departments provided
sufficient support in developing IFRS-compliant accounting curricula, which could be in the
form of workshops and/or seminars.

The interview data corroborate the study’s quantitative findings. Interviewees highlighted the
importance of having appropriate materials for IFRS (e.g. case studies, projects), particularly at
institutions where Arabic is the medium of instruction. Dr. 2 pointed out that not all Saudi
companies have adopted IFRS, and that the SOCPA version of GAAP is still commonly used at
many organisations. Hence, teachers are cautious not to completely remove GAAP from
accounting curricula, as doing so could affect their students’ employability. Indeed, Dr. 3
maintained that GAAP knowledge is important for graduates not employed by large companies,
who may need to prepare financial statements using GAAP rather than IFRS. The interviews also
confirmed that lecturers’ understandings of IFRS were not current, and that additional training
would be necessary to enhance their knowledge and skills.

Saudi insurance companies and banks, irrespective of whether they are listed or not, are required
by the SAMA to adopt IFRS, whilst other companies have been given until 2017 to prepare
themselves for this, and until that time, are allowed to continue with their use of the local GAAP.
Consequently, no universal agreement exists that IFRS should feature as a prime focus of
university programmes, and some universities have made no change to their curricula, with the

3
For the sake of brevity, these results have been excluded; however, they are available upon request.

15
 GAAP still being taught at all levels. This is hardly surprising given that many organisations in
the Saudi private sector where graduates will find jobs, still use the local GAAP and may
continue to do so for a long time yet. Clearly, accounting educators find themselves in
challenging circumstances since industry appears to be attached to one set of principles.

Dr. 1 noted that bureaucracy is a major impediment to the adoption of IFRS, wherein curriculum
development and approval is dependent on the decisions of various committees and councils,
who may actually object to the inclusion of IFRS. The development of an accounting course
requires relevant departments to exert tremendous effort, as they must ultimately formulate the
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proposed changes, forward them to the Committee of Academic Curricula and Planning for
review, and then to the college council for ratification, after which final approval must be
obtained from the university council. These steps indicate a concern for the quality of curricula
and course materials, but they are time consuming, and inhibit expedient responses to
environmental changes.

Interviewees stated that the aforementioned problems had the most immediate impact on
accounting teachers, in addition to differences between GAAP and IFRS terminology (e.g.
‘income statement’ and ‘statement of financial position’ replace ‘profit and loss account’ and
‘balance sheet’, respectively). Problems that arise from changes to terminology are far more
disruptive in academia than in practice, wherein professional expertise facilitates a smoother
transition. Students lack such expertise, and inconsistencies in terminology are therefore quite
problematic for them. Even the interviewees reported difficulties in using IFRS terminology
consistently, and mismatches between IFRS terms and those used in students’ textbooks were
common. Indeed, students frequently complained that dealing with multiple terms
simultaneously was strenuous, and questioned the necessary of doing so, particularly since
teachers themselves often forgot to use IFRS terminology.

In addition, interviewees indicated that because Islamic law is applied to most activities in Saudi
Arabia (including business), cultural idiosyncrasies can hinder the adoption of IFRS. Likewise,
interviewees highlighted the role of language in hampering the implementation of IFRS in
accounting courses. This is particularly true for universities that teach in Arabic, as IFRS

16
 resources in Arabic are scarce, thus requiring extensive translation. Moreover, interviewees were
doubtful that such translations would even be accurate, an issue compounded by the fact that
many faculty members have poor English. There are also no mechanisms in place to assist
institutions in developing Arabic resources. Regardless of whether these issues are rooted in
cultural nuances, the bottom line is that faculty members are not qualified in IFRS, and that
adequate training is rarely provided.

6. CONCLUSION
Accepting the global shift from the GAAP to IFRS and the implications that this move has for
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accounting education, this paper has explored the impact of such factors (instructor’s attitude,
size of accounting department, teaching load, type of institution, teaching experience, and
teaching materials) on the time instructors spend in including IFRS materials in the accounting
curriculum. Its results provide evidence that the presence of specific factors (instructor’s attitude
and availability of IFRS materials) are influential in this respect. Additionally, it demonstrates
which factor contributes the most, it emerging that these two factors are the greatest contributors.
The implication is that the familiarity instructors have with the local GAAP serves to create
resistance among them to incorporate IFRS in their teaching, even when they are provided with
appropriate materials and incentives. This attitude is detrimental to the quality of accounting
education offered to students. Additionally, it is demonstrated that the absence of IFRS materials,
which is particularly acute in those departments that teach in Arabic, place an added burden on
teachers who have no alternative but to design their own or devote a great amount of time to
gathering such materials from elsewhere. Consequently, there is an urgent need for teachers to be
supported in their endeavours to develop the curriculum, and this implies that heads of
accounting departments must satisfy this need, and simultaneously arrange for adequate training
and workshop attendance, since this aspect of professional development is also influential upon
the time spent on teaching IFRS in accounting courses.

Undoubtedly, there remains a feeling of uncertainty in the minds of many Principles of

Accounting teachers in Saudi Arabia as they wait to see the extent of the adoption of IFRS in the
country before investing time in curriculum change. At the same time, other influences are
present in the slow introduction of IFRS in accounting curricula, such as institutional and faculty

17
 characteristics, and it is essential to arrive at a clear appreciation of the overall conditions that
foster IFRS coverage in universities.

In this respect, the study makes a contribution to what is already known, offering insight into the
obstacles to the voluntary inclusion of IFRS by university staff, who have no strong direction
provided by the professional body, despite the fact that accounting practice in Saudi Arabia is in
a state of flux with one set of regulations being in place for listed entities and another for unlisted
ones. The study also makes a contribution to the accounting education literature via its statement
of the current situation in university undergraduate accounting courses as perceived by the
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suppliers. Given the SOCPA intention to determine the capability of teaching staff in respect of
IFRS before deciding whether to make the teaching of these standards compulsory, this
knowledge is essential. At the same time, it is essential for the antecedents of the situation where
teachers are not predisposed to include IFRS voluntarily to be understood, and through its
attention to institutional factors, faculty characteristics, and practical barriers, the study has been
able to alert the SOCPA to the wider context in which educators make their decisions. The
particular factors explored (instructor’s attitude, size of accounting department, teaching load,
type of institution, teaching experience, and teaching materials) are tangible ones that can all be
addressed in an effort to promote the inclusion of IFRS in the accounting curriculum.

The study was limited in some respects. Although the sample comprised both men and women,
no analyses were performed to determine whether there were any differences between genders. It
is certainly possible that gender could have an effect on the time that instructors dedicate to
IFRS. Likewise, age was not explored as a variable. Thus, future research might focus on the
effects of gender and/or age on teachers’ attitudes toward IFRS and its inclusion in their lessons
and curricula.

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Appendix A

- Job title: Prof. / Associate Prof. / Assistant Prof. / Lecturer

- Gender: Male / Female
- Academic qualification
- Professional qualifications: (e.g. CIA, CPA, ACCA, CMA, etc.)
- Work experience in teaching accounting courses
- Teaching experience in IFRS material
- Your university classification: Public / Private
- Total number of faculty members in accounting department
- Teaching load in the semester
- Total number of students majoring in accounting

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 - Student’s learning about IFRS in non-accounting classes
- The importance of having an understanding of IFRS
- The importance to provide an extensive introduction to IFRS in accounting courses.
- Covering IFRS-related material in your accounting courses
- Time spent in total in the semester to teach IFRS related materials
- Support received from the head of the accounting department to update the accounting
curriculum in accordance to IFRS
- An understanding from the dean of the business school to update the accounting
curriculum in light of the convergence of IFRS
- Familiarity with the details of IFRS
- Training in IFRS
- Attending seminars in IFRS
- The adequacy and availability of teaching materials regarding IFRS for the accounting
courses.
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- Resources/teaching materials to increase the coverage of IFRS

- Factors influencing the adoption IFRS in the accounting curriculum and teaching IFRS
- Strategy of incorporating IFRS education

22