Does Islamic religiosity influence professional accountants' judgments? Evidence from global convergence of IFRS

A.F.M. Mainul Ahsan, Sudipta Bose and Muhammad Jahangir Ali

Advances in accounting, 2024, vol. 64, issue C

Abstract: We examine the influence of religiosity on professional accountants' judgments towards global convergence of financial reporting using, as an example, the Islamic religiosity context of Bangladesh. Professional accountants' judgments, in relation to the global convergence of the International Financial Reporting Standards (IFRS), is measured using Gray's (1988) accounting values (professionalism vs. statutory control, uniformity vs. flexibility, conservatism vs. optimism and secrecy vs. transparency), with Islamic religiosity measured using the Sahin–Francis Scale of Attitude towards Islam. We find that professional accountants in Bangladesh who have higher levels of Islamic religiosity values are supportive of statutory control, conservatism, uniformity, and secrecy. These findings suggest that professional accountants in Bangladesh are less likely to be supportive of principles-based financial reporting standards such as IFRS. The findings have implications for global accounting standard setters, international accounting firms, and multinational companies, particularly in Islamic countries. Our study findings may be useful to regulators in Bangladesh and other Islamic countries in improving the quality of the convergence of IFRS.

Keywords: International Financial Reporting Standards (IFRS); Islamic religiosity; Principles-based standards; Rules-based standards; Accountants' professional judgments; Structural equation modelling (search for similar items in EconPapers)
JEL-codes: D91 G41 M41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:advacc:v:64:y:2024:i:c:s0882611023000822

DOI: 10.1016/j.adiac.2023.100723

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