*4.4. Comparability and Transparency of Finance Statement*

The first objective of this study was geared towards examining comparability and transparency of the financial statements. To effectively examine this, respondents were requested to indicate their opinion about the comparability and transparency of the financial statements concerning the IFRS. To reduce ambiguity, the results were collapsed from a five-point Likert scale to three-point Likert scale options and their mean values were stipulated.

Table 2 shows the respondents' views on comparability and transparency of the financial statements. Of the respondents, 48 (96%) agreed that there was a higher quality of disclosure in financial statements presented under IFRS than under the former OHADA Uniform Accounting Act. There were no neutral views on this, while a minority of two respondents (4%) disagreed. However, the mean value of 4.61 on a scale of 5 showed there was a strong positive correlation as stipulated by the statement. Thus, we can conclude that there was a higher quality of disclosure in financial statements presented in accordance with IFRS than with the former OHADA Uniform Accounting Act. In terms of comparability, a significant percentage of respondents, 46 persons (92%), agreed that the financial statements were directly comparable to national and international companies. There was one neutral view (2%) and three persons (6.0%) who disagreed with the statement that the financial statements were directly comparable to national and international companies. This can be seen from the mean value of 4.35 on a scale of 5 which shows that there was a strong positive correlation.


**Table 2.** Respondents' views on comparability and transparency of financial statements.

Source: Developed purposely for this research.

Similarly, out of the 50 respondents sampled, 49 of them (98%) agreed that IFRS were appropriate for achieving a true and fair view of the financial statements. There was just one person (2%) who disagreed to the fact that the IFRS were appropriate for achieving a true and fair view of the financial statements. There was, therefore, a very strong indication that the IFRS were appropriate for achieving a true and fair view of the financial statements as stipulated by the mean value of 4.84 on a scale of 5, which shows the statement was in line. Furthermore, concerning the statement indicating that the financial statements prepared under the IFRS were more transparent than those prepared under the former OHADA Uniform Accounting Act, a vast majority of the respondents (47 persons) confirmed the assertion to be true. However, three persons differed with the claim. Going from the majority, it can be noted that the financial statements prepared following the IFRS were more transparent than those prepared under the former OHADA Uniform Accounting Act. Furthermore, the mean value of 4.39 on a scale of 5 tells us that there was a strong positive correlation in the statement.

Furthermore, 49 respondents agreed that the implementing of IFRS would increase the ability to understand financial statements. As well, 48 respondents (96%) strongly agreed that there was a higher quality of disclosure in financial statements presented in accordance with IFRS than under the former OHADA Unfirom Accounting Act. Forty-six people (92.0%) agreed that the financial statements were directly comparable to national and international companies, while 4 (8%) disagreed with this. In a nutshell, the mean value of 4.58 on a scale of 5 shows there was a strong positive correlation with the statement with the Cronbach alpha of 0.842 as shown in Table 3 below.


*4.5. Examining the Possibility of Fully Implementing the International Financial Reporting Standards in Cameroon*

Another aspect of the study was to examine the extent of the application of IFRS in the Cameroon accounting system.

As seen in Table 4, more than three quarters (84.0%) of the respondents strongly agreed that were aware of the International financial reporting standards; eight (16.0%) agreed, and none of the participants disagreed with this. This was closely supported by an understanding of the differences between the IFRS and SYSCOHADA. It was revealed that most of the respondents clearly knew the differences between the accounting reporting systems, as 39 (78.0%) strongly agreed to this, 10 (20.0%) agreed, while one person (2.0%) expressed a neutral view. However, their computed mean was greater than 2.5 and above, which shows that both statements were positively correlated.

**Table 4.** Respondents' view on the extent of the implementation of International Financial Reporting Standards (IFRS) in Cameroon.


Source: Developed purposely for this research.

From Table 4 above, the study also found that a majority of the respondents (52%) disagreed with the assertion that Cameroon has the structures needed to carry out a revaluation of fixed assets. Four neutral respondents comprised 8%, and as the mean value of 2.35 on a scale of 5 shows, there was a weak positive correlation. Furthermore, 40% of the respondents felt that Cameroon has the structures needed to carry out the revaluation of fixed assets. This depicts clearly that many of the respondents think that Cameroon does not have the necessary structures and infrastructures to implement the IFRS, as well as the revaluation of fixed assets.

50 respondents agreed with the assertion that the natures of fixed assets in most companies are such that they can be decomposed and recorded separately. Of the total respondents, 34% strongly agreed with that assertion, 42% agreed (giving a total of 76% for those who agreed), two respondents could not tell whether companies have fixed assets that can be decomposed and recorded separately, and 20% disagreed that companies have fixed assets that can be decomposed. This shows that most of the respondents hold the view that the natures of fixed assets in most companies are such that they can be decomposed and recorded separately. The computed mean value of 3.39 shows that the statement was in line.

Furthermore, 60% agreed that accountants understand the distinguishing factors in the IFRS for SME's, and only 10% and 30% were neutral and strongly disagreed, respectively. The computed mean value of 4.00 shows there was a strong positive relationship. However, 78% agreed that accountants of SME's who report internationally had been well trained to prepare their statements in accordance to the revised standards. In comparison only 8% and 14% were neutral and disagreed, respectively. In a nutshell, the mean value of 3.61 on a scale of 5 shows that the statement was positively correlated.

In addition to that, 11 respondents (22%) strongly agreed that the clients fully understand the IFRS and can prepare their statements for the 2018 financial year under the IFRS; 15 respondents (30%) supported this, while 6% of the respondents were indifferent. However, 10% of the total respondents disagreed with the assertion that their clients fully understand the IFRS and can prepare their statements for the 2018 financial year per the IFRS. Accountants understand the distinguishing factors in the IFRS for SMEs, and the mean value of 2.77 shows the statement was strongly correlated.

Equally, from those sampled in the study, less than half accepted that companies have understood the changes in the statistics and tax return filling, while few were indifferent. This was opposed to about 72% who disagreed that companies' accountants understand the changes in tax return filing with the introduction of IFRS. The last aspect indicates that most of the respondents disagreed that their clients would be able to prepare their tax returns in accordance with the revised laws for the 2018 financial year. This was opposed to a few whom the study found could, and the mean value of 3.9 on a scale of 5 shows there was a strong positive correlation with the Cronbach's alpha of 0.818 as shown in Table 5 below.



*4.6. Perception on the Costs and Benefits Involved in Transitioning from the Former OHADA to IFRS*

The last objective of this study sought an understanding of respondents' perception on the costs and benefits involved in transitioning from the OHADA GAAP to IFRS as shown in the Table 6 below.


**Table 6.** Respondents' perceptions of the costs and benefits involved in transitioning from the Organisation for the Harmonisation of Business Laws in Africa (OHADA) GAAP to IFRS.

Source: Developed purposely for this research.

As seen in the Table 6 above, an evaluation of respondents' opinions on the cost-benefit analysis of the implementation of IFRS found a strong confirmation by all respondents that implementing IFRS would increase the relevance of accounting information for decision making. About three-quarters of the respondents agreed that preparing financial statements under the IFRS would increase the opportunities of Cameroon companies for assessing global markets. This was supported by the remaining one quarter 13 (26%) of respondents. However, the mean values greater than 2.5 on a scale of 5 shows that there was a strong positive relationship in the stipulated statement.

Likewise, it was confirmed by 38 (76%) of the respondents that presenting financial statements per the IFRS would assure greater accessibility of funds for Cameroonian companies. While eight (16%) of the respondents supported this assertion, four (8%) significantly differed and four (5%) were indecisive.

In terms of cost of capital, the results proved that 34 (68%) of the respondents strongly agreed that transitioning to IFRS would lower the cost of capital; this was decided upon by 10 respondents (20%) of the respondents, while three respondents (6%) stayed neutral and three respondents (6%) disagreed. Conversely, 11 (22%) of the respondents held that transitioning to IFRS required the training of staff, which would be costly to organisations. Nevertheless, the majority of the respondents (72%) disagreed with the minority. This was confirmed by the mean value of 2.05 which was less than 2.5, showing there was a weak positive correlation.

On another dimension, 49 respondents (98%) held that transitioning to IFRS would provide professional opportunities to accounting professionals in Cameroon across the globe. Transitioning to IFRS would make the business climate more welcoming to investors according to 48 (96%) of the respondents. Likewise, transitioning to the IFRS would require a change in the accounting processes according to 35 (70%) of the respondents, although 13 (26%) of them opposed. In a nutshell, the mean value of 3.94 shows the statement was strongly in line.

In terms of technological change, the results recorded a significant confirmation by 31 (62%) respondents that implementing IFRS would require substantial information technology infrastructure of several organisations. This was opposed by 17 (34%) of the respondents, while two (4%) of them were uncertain. This was in accordance with the mean value of 3.57 which was greater than 2.5 on a scale of 5. This shows there was a strong positive correlation with and the Cronbach alpha of 0.825 as shown in Table 7 below.



Source: Results obtained from SPSS.

Moreover, the IFRS requires too much disclosure of financial information, which was troublesome according to 25 (50%) respondents, besides the fact that implementation of IFRS would require significant changes in various existing laws. The mean value of 2.5 on a scale of 5 shows there was a positive correlation stipulated by the statement. IFRS recommends the application of the fair value concept, which is generally difficult to apply.

In terms of the effect on earnings, the study found that 30 (60%) of the respondents admitted that implementing IFRS would increase volatility in the company's earnings. This is because financial statements presented under the IFRS are prone to manipulation since businesses can use the methods they wish. This was according to 13 respondents (23%), while the majority disdained. However, the result shows a weak positive correlation of 2.46 on a scale of 5 as stipulated by the statement.
