Exploratory Factor Analysis of the Challenges and Obstacles of the Implementing IFRS in Iran

Document Type : Research Paper


1 Ph.D. Candidate, Department of Accounting, Urmia Branch, Islamic Azad University, Urmia, Iran.

2 Associate Prof, Department of Accounting, Urmia Branch, Islamic Azad University, Urmia, Iran.

3 Assistant Prof., Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran.


Objective: This study was conducted to investigate the exploratory factor analysis of the challenges and obstacles of the implementing IFRS in Iran from the point of view of CFOs of the listed companies, banks and insurance companies.
Methods: The research method is descriptive and exploratory. The data of this study was collected from 127 people as the sample. The data collection tool was a 52-questions Non-standard questionnaire. The initial reliability of the questionnaire was 93% by Cronbach's alpha method. After distributing, collecting and analyzing the questionnaire data by exploratory factor analytical method, obstacles were extracted.
Results: To evaluate the sampling adequacy, the sampling adequacy index is 0.717 and the value of Chi-square statistic for Bartlett test is 4165.46, which can say that doing exploratory factor analysis is reasonable. After confirming this hypothesis, factor analysis was performed on the subjects' answers to 52 questionnaire questions using principal component method and Varimax rotation. Preliminary statistical characteristics performed by the principal component analysis showed that the special value of 10 factors was greater than 1; Together, these 10 factors explained 62.73% of the total variance of the variables.
Conclusion: Based on the results of the study, obstacles to the implementation of the international financial reporting standards in Iran were classified into 10 main components, including: insufficient knowledge about the international financial reporting standards, political and legal factors, ownership structure and capital market, administrative system and cultural characteristics, lack of a comprehensive evaluation system, resistance to change, financial rules and regulations, economic conditions, disagreement between stakeholders, lack of conceptual framework.


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