The adoption of international accounting standards in Bangladesh: An exploration of rationale and process
Accounting, Auditing & Accountability Journal
Article publication date: 1 December 2005
This paper seeks to evaluate the recent decision of the Bangladeshi Government and accounting profession to adopt international accounting standards (IASs).
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.
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.
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.
Zaman Mir, M. and Shiraz Rahaman, A. (2005), "The adoption of international accounting standards in Bangladesh: An exploration of rationale and process", Accounting, Auditing & Accountability Journal, Vol. 18 No. 6, pp. 816-841. https://doi.org/10.1108/09513570510627720
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