Compliance with accounting standards by financial Institutions: Some evidence from Bangladesh

Majidul Islam and Ashrafee Tanvir Hossain

Research in Accounting Regulation, 2017, vol. 29, issue 2, 145-151

Abstract: As Bangladesh is going through socio-economic and political changes, this paper investigates the disclosures required by ‘Bangladesh Accounting Standards’ or ‘International Financial Reporting Standards’, as adopted/adapted in Bangladesh and whether affiliation with Big-4 accounting firms leads to better compliance with disclosure requirements. We analyze the financial statements of 26 banks on liquidity, concentrations of assets, liabilities and off-balance-sheet items, related-party transactions, and unconsolidated entities. Our results indicate that banks are not ensuring essential compliance with all disclosure items in national standards. Banks audited by Big-4 affiliates display better compliance in financial statements than those audited by non-affiliates, with some exceptions. Our research provided evidence that, in contrast to general understanding and expectation, Big-4 associates in developing country may not absolutely outperform local firms. We also find systematic non-compliance with provisions of standards that would be useful for inferring group membership despite compliance with other disclosure provisions.

Keywords: Financial reporting practices; International financial reporting standards; Compliance; Factors motivating compliance (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1052045717300346
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reacre:v:29:y:2017:i:2:p:145-151

DOI: 10.1016/j.racreg.2017.09.006

Access Statistics for this article

Research in Accounting Regulation is currently edited by G. Previts

More articles in Research in Accounting Regulation from Elsevier
Bibliographic data for series maintained by Catherine Liu ().