An investigation of the level of compliance with international accounting standards (IAS 1) by listed firms in Bahrain Bourse

Fatema Ebrahim Alrawahi and Adel Mohammed Sarea

International Journal of Islamic and Middle Eastern Finance and Management, 2016, vol. 9, issue 2, 254-276

Abstract: Purpose - This study aims to investigate the association between seven firm-specific characteristics and the level of mandatory compliance with International Accounting Standards (IAS) 1 by firms listed on Bahrain Bourse. Design/methodology/approach - A disclosure index is used to measure the extent of compliance with IAS 1. Each of the 36 sampled firms’ annual reports were examined against the index for the financial year ending December 31, 2013. Findings - The results reveal an overall compliance of 83 per cent. Regression results report that only audit firm size, profitability and industry type have a positive and significant association with IAS 1 disclosure requirements. Practical implications - This study should be particularly relevant to regulatory bodies in Bahrain for strategizing and encouraging compliance with IAS 1 by listed firms. Originality/value - Additionally, the study contributes to financial reporting literature relating to the Gulf Cooperation Council countries, mainly Bahrain. Bahrain is a financial hub, and it is interesting to examine how it presents its financial statements to investors and the degree of its compliance with International Financial Reporting Standards since its adoption in 2007.

Keywords: Accounting; Disclosure; IFRS; Bahrain Bourse; Corporate financial reporting (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:eme:imefmp:v:9:y:2016:i:2:p:254-276

DOI: 10.1108/IMEFM-07-2015-0077

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