Determinants of Professionals’ and Academics’ Perception of IFRS 18 Requirements and Its Impact on the Predictive Value of Financial Reports: A Comparative Study in the Business Environment of Kassala State, Sudan

Abstract

This study aimed to identify the determinants of professionals’ and academics’ perception of the International Financial Reporting Standard No. 18 (IFRS 18) requirements and its impact on enhancing the predictive value of financial reports, through a comparative study in the business environment of Kassala State, Sudan. The study adopted the descriptive-analytical approach, utilizing a questionnaire as the primary tool for data collection from a stratified random sample consisting of (60) respondents, including academics, legal auditors, and financial analysts. Data were analyzed using the Statistical Package for the Social Sciences (SPSS) through descriptive statistics, Cronbach's Alpha for reliability analysis (which scored 0.85), and the Chi-Square (\chi^2) test for goodness of fit and independence to test the hypotheses.

The study revealed several key findings: there is a high overall perception of the importance of IFRS 18 in improving the quality and presentation of financial performance. Furthermore, statistically significant differences were found in the perception of the standard's requirements due to demographic determinants. Specifically, perception regarding the new income statement structure (the three-category presentation and mandatory operating profit) varied based on the (job position) in favor of academics who demonstrated a higher conceptual conviction. Conversely, perception regarding the governance of Management-defined Performance Measures (MPMs) and the mandatory reconciliation tables varied based on (years of professional experience) in favor of the more experienced groups (more than 10 years). The results also confirmed a solid consensus that strict aggregation and disaggregation requirements prevent management from obscuring operating losses, thereby enhancing the predictive value of earnings. The study recommended the urgent need for Sudanese universities to update accounting curricula to align with the new standard, and to organize joint professional workshops to bridge the knowledge and application gap between the academic and practical sectors.