The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain
Journal of Investment and Management
Volume 4, Issue 5, October 2015, Pages: 216-227
Received: Jul. 21, 2015; Accepted: Aug. 4, 2015; Published: Aug. 13, 2015
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Authors
Isa Adnan Budaraj, MBA program, Ahlia University of Bahrain, Manama, Kingdom of Bahrain
Adel Mohammed Sarea, Accounting and Economics Department, Ahlia University of Bahrain, Manama, Kingdom of Bahrain
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Abstract
This Study examines the association between five firm-specific characteristics and the level of compliance with International Accounting Standards (IAS 18) by listed Firms in Bahrain Bourse. A self-constructed compliance checklist was developed and the compliance index was derived to represent the level of compliance among publically traded firms in Bahrain Bourse for the year 2013 to IAS 18 disclosure requirements. The results detected an aggregate mean compliance of 63% to IAS 18 disclosure requirements. A significant positive relationship was found between the level of compliance and a company’s size, and auditor type. A significant negative relationship was found between the IAS 18 disclosure level and a company’s debt level (leverage). However, a significant relationship between the level of IAS 18 disclosure level and a company’s profits or age could not be established in this research. The results of this research can benefit investors and companies as well, as the results will determine what level of compliance to IAS 18 are listed companies in Bahrain Bourse are committed to, and how transparent are the revenues they are reporting in their financials
Keywords
Corporate Financial Reporting, IAS 18, Disclosure, Bahrain Bourse
To cite this article
Isa Adnan Budaraj, Adel Mohammed Sarea, The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain, Journal of Investment and Management. Vol. 4, No. 5, 2015, pp. 216-227. doi: 10.11648/j.jim.20150405.22
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