Development of financial reporting environment in Malaysia

Balachandran Muniandy and Muhammad Jahangir Ali

Research in Accounting Regulation, 2012, vol. 24, issue 2, 115-125

Abstract: The purpose of our paper is to examine the development of the financial reporting environment in Malaysia. We explore the influence of environmental factors such as social, political, economic, legal and cultural in the development of accounting and Malaysia’s recent move towards the adoption of International Financial Reporting Standards (IFRS). We find that Malaysia’s colonial past and the reformation of corporate governance have significantly influenced the country’s financial reporting practices. Although there are a number of reforms in place more needs to be done in order to improve the transparency of corporate financial reporting practices in Malaysia. Our conclusion suggests the necessity to improve the quality of financial reporting practices and to build the confidence of stakeholders and potential investors. The findings of our study are particularly important to the standard-setters, regulators and accounting professionals to improve the financial reporting practices in Malaysia and other developing countries throughout the world.

Keywords: Financial reporting practices; Accounting regulation; Corporate governance; International Financial Reporting Standards; Malaysia (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reacre:v:24:y:2012:i:2:p:115-125

DOI: 10.1016/j.racreg.2012.05.004

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