Accounting Developments in Algeria: The Road to IFRS

Saidi, F. (2013) “Accounting Developments in Algeria: The Road to IFRS”, International Research Journal of Applied Finance. Vol. IV, pp. 124-142.

23 Pages Posted: 16 Jun 2017

See all articles by Fethi Saidi

Fethi Saidi

Qatar University, College of Business and Economics

Date Written: January 1, 2013

Abstract

Developing and emerging countries are progressively embracing globalization and implementing International Financial Reporting Standards. This study seeks to analyze how Algeria initiated the transformational processes of its local accounting practice to meet the International Financial Reporting Standards. The study is primarily qualitative in nature and based on data gathered primarily from archival sources. The main focus of the present study is threefold in nature. Firstly, is to highlight the unique context in which Algeria is converging to IFRS, characterized mainly by the colonial and centrally planned economy background. Secondly, after the analysis of the flaws of the old accounting system, the main features and benefits of the new IFRS compliant financial accounting system (hereinafter, NFAS) are outlined. Thirdly, the issues and challenges related to the implementation of IFRS in an emerging country such as Algeria are investigated and explained in-depth. This study suggests first that a more careful approach should be adopted when carrying out a transformation of the accounting system of a country that used to live under a centrally planned economy for more than five decades. Secondly, it stresses on the urgent need to develop an appropriate regulatory environment to enforce the application of the new financial accounting system and to bring all the concerned stakeholders to embrace the requirements of the new accounting era. Thirdly, all the challenges facing the adequate implementation of NFAS must be seriously recognized and resolved in order to benefit fully from this historical shift in the Algerian accounting practice.

Keywords: PCN, IFRS, NSCF, emerging country, Algeria, Plan Comptable National

JEL Classification: M41, M48

Suggested Citation

Saidi, Fethi, Accounting Developments in Algeria: The Road to IFRS (January 1, 2013). Saidi, F. (2013) “Accounting Developments in Algeria: The Road to IFRS”, International Research Journal of Applied Finance. Vol. IV, pp. 124-142., Available at SSRN: https://ssrn.com/abstract=2987409

Fethi Saidi (Contact Author)

Qatar University, College of Business and Economics ( email )

2713 Doha
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