Challenges Of Implementing IFRS S1 And IFRS S2 In Developing Countries: Evidence From The Gambia

The issuance of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures by the International Sustainability Standards Board (ISSB) represents a significant development in global corporate reporting. Although the standards seek to improve the consistency, comparability and usefulness of sustainability-related financial information, their implementation may present considerable challenges for developing countries. This study examines the challenges associated with implementing IFRS S1 and IFRS S2 in The Gambia. Specifically, the study investigates the effects of human-resource capacity, technological and data infrastructure, regulatory and institutional support, implementation cost, and awareness and professional training on organisational readiness to implement IFRS S1 and IFRS S2. The study adopts a quantitative cross-sectional research design. Data are proposed to be collected through a structured questionnaire administered to accountants, auditors, finance managers, internal auditors, academics, regulators and senior managers in The Gambia. Using an illustrative sample of 180 respondents, descriptive statistics, Cronbach's alpha, Pearson correlation and multiple regression analysis are employed. The illustrative regression results indicate that human-resource capacity, technological and data infrastructure, regulatory and institutional support, implementation cost, and awareness and professional training significantly influence implementation readiness. The model explains approximately 64% of the variation in IFRS S1 and IFRS S2 implementation readiness. The study contributes to the emerging literature by providing a quantitative framework for examining ISSB implementation challenges in a small developing economy. The findings suggest that successful implementation requires more than regulatory adoption; it requires investment in professional competence, sustainability-data systems, regulatory guidance, training and assurance capacity.