The adoption of international accounting standards in Bangladesh

Monir Zaman Mir (School of Business and Government, University of Canberra, Canberra, Australia)
Abu Shiraz Rahaman (The Haskayne School of Business, University of Calgary, Calgary, Canada)

Accounting, Auditing & Accountability Journal

ISSN: 0951-3574

Publication date: 1 December 2005

Abstract

Purpose

This paper seeks to evaluate the recent decision of the Bangladeshi Government and accounting profession to adopt international accounting standards (IASs).

Design/methodology/approach

The paper uses a variety of archival data and interviews with key actors, including preparers and users of annual reports, members of the Securities and Exchange Commission, and members of the professional accounting bodies: ICAB and ICMAB.

Findings

The paper finds that institutional legitimisation is a major factor that drives the decision to adopt IASs because of the pressure exerted by key international donor/lending institutions on the Bangladeshi Government and professional accounting bodies. Such pressure results from not only the need to provide credibility to foreign investors but also the need for strong accountability arrangements with lending/donor agencies. However, the perceived undemocratic nature of the adoption process appears to be creating and enhancing conflict among various constituencies, resulting in very low compliance with these standards.

Originality/value

The paper contributes to the understanding of the diffusion of International Accounting Standards and the role of global agencies, such as the World Bank, within this process.

Keywords

Citation

Zaman Mir, M. and Shiraz Rahaman, A. (2005), "The adoption of international accounting standards in Bangladesh", Accounting, Auditing & Accountability Journal, Vol. 18 No. 6, pp. 816-841. https://doi.org/10.1108/09513570510627720

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2005, Emerald Group Publishing Limited

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