A New Institutional Analysis of IFRS Adoption in Egypt: A Case Study of Loosely Coupled Rules and Routines

This paper examines the symbolic use of International Financial Reporting Standards (IFRS) in an Egyptian state-owned company (AQF Co.) that is partially privatised by drawing on new institutional sociology and its extensions. It explains how the ceremonial use of IFRS is shaped by the interplay between institutionalised accounting practices, conflicting institutions, power relations and the use of IT to institutionalizing accounting rules and routines. The research methodology is based on using an intensive case study. Data were collected from multiple sources, including unstructured and semi-structured interviews, direct and participative observations, discussions and documentary analysis. The findings revealed that the company faced conflicting institutional demands from outside. The Central Agency for Accountancy required the company to use the Uniform Accounting System (as a state-owned enterprise) and The Egyptian Capital Market Authority required the company to use IFRS (as a partially private sector company registered in the stock exchange). To meet these conflicting institutional demands, the company adopted loosely coupled accounting rules and routines and IT was used to institutionalizing existing Uniform Accounting System and preserving the status quo.