Has the harmonisation of accounting practices improved? Evidence from South Asia

Abstract

Purpose

This paper aims to examine whether the level of harmonization of accounting measurement practices in three South Asian countries – Bangladesh, India and Pakistan – has improved since 1998 as a result of the changes, in recent years, globally in accounting measurement practices due to the substantial efforts of the International Accounting Standards Board (IASB). South Asian countries have taken a number of steps and made changes in accounting regulations to support the IASB’s harmonization programme.

Design/methodology/approach

In all, 370 non-financial companies for the financial years 1997-1998 and 2007-2008 were used, and consistent with Ali et al. (2006), Van der Tas’s (1988) I index and Archer et al.’s (1995) modified C index were used to measure the extent of harmonization.

Findings

It was found that the level of measurement harmonization has significantly improved over the years in selected South Asian countries.

Originality/value

The results suggest that the harmonization of accounting will most likely ensure a greater level of transparency and uniformity in corporate reporting practices (measurement) in South Asian countries and throughout the world as promoted by the IASB.

Citation

Ahmed, K. and Ali, M.J. (2015), "Has the harmonisation of accounting practices improved? Evidence from South Asia", International Journal of Accounting & Information Management, Vol. 23 No. 4, pp. 327-348. https://doi.org/10.1108/IJAIM-12-2014-0082