Adoption and impact of enterprise resource planning in conversion of IAS/IFRS

One of the most significant change in financial reporting has been the shift from local or national standards to a uniform and common reporting language known as International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). The advantages of accounting standards has significantly changed the accounting process and accounting information system. Companies are upgrading or reconfiguring existing accounting information systems, reporting tools and software/applications to collect data that meets the requirements of these new standards and facilitate the preparation of their financial statements. ERP systems and related integrated technologies have been a transformative force of the developments in accounting practice. There are important factors that play a role in the decision to adopt ERP systems in the IAS/IFRS conversion of companies, now and as well as in the future. This study explores the factors that play an important role in the adoption of ERP systems in the IAS/IFRS conversion process by examining the process from a theoretical and empirical perspective. The factors that have an impact on the adoption of ERP systems in the IAS/IFRS conversion are discussed within the framework of the technology, organization and environment (TOE) model. In addition, this study investigates whether traded and not traded companies prepare financial statements in accordance with IAS/IFRS on their own or through audit firms. Another research investigation is whether companies prepare their financial statements based on VUK or UMS/IFRS while preparing their management reports. Enterprise resource planning system users that prepare financial reports in accordance with IAS/ IFRS in companies of Turkey constitute the universal set of the research. The survey data, obtained from 324 participant, was analyzed with partial least squares structural equation modeling using SmartPLS software. The findings show that top management support, compatibility, relative advantage and coordination have a positive and significant effect on the adoption of ERP systems in the IAS/IFRS conversion, while complexity has a negative and significant effect. The findings also show that cost, organizational capability and consultant support do not have a significant impact on the adoption of ERP systems in the IAS/IFRS conversion. The results of this study provide an understanding of the factors that companies, institutions and organizations can consider when developing strategies.