Users’ opinions about different aspects of accounting harmonization: Evidence from the gulf co‐operation council (GCC)

Abstract

This study investigates the perception of users of corporate annual reports about various aspects of accounting harmonization. To serve this purpose, a questionnaire was distributed to four user groups (investors, government officials, auditors and academics). The results of the analysis revealed that sharing the same language, as well as sharing similar economic and cultural features are the most important factors expected to positively affect the harmonization of accounting practices in the GCC countries. However, the most important factors expected to obstruct accounting harmonization practices across GCC countries are the lack of professional and legal requirements as well as enforcement problems. The outcome of the analysis also revealed that harmonization is expected to (1) improve comparison between companies, (2) increase usefulness of financial information to decision makers, and (3) ensure consistency in the use of accounting rules over time. It was also evident from the analysis that lack of harmonization is viewed as the most likely factor to prevent some investors from investing across the GCC countries.

Citation

Naser, K., Al‐Khyal, T., Nuseibeh, R. and Al‐Tweel, I. (2005), "Users’ opinions about different aspects of accounting harmonization: Evidence from the gulf co‐operation council (GCC)", International Journal of Commerce and Management, Vol. 15 No. 3/4, pp. 272-299. https://doi.org/10.1108/10569210580000202