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The level of compliance with International Financial Reporting Standards (IFRS 7): Evidence from Bahrain Bourse

Adel Mohammed Sarea (Accounting and Economics Department, Ahlia University, Manama, Kingdom of Bahrain)
Zahra Abdulla Al Dalal (Accounting and Economics Department, Ahlia University, Manama, Kingdom of Bahrain)

World Journal of Entrepreneurship, Management and Sustainable Development

ISSN: 2042-5961

Article publication date: 13 July 2015

791

Abstract

Purpose

The purpose of this paper is to examine the level of compliance with International Financial Reporting Standards (IFRS 7) by listed companies in Bahrain Bourse (BB).

Design/methodology/approach

First, the authors design disclosure compliance checklist of ten requirements of IFRS 7. Second, a score of 3 is assigned if high level of compliance, 2 is assigned if medium level of compliance, 1 is assigned if low level of compliance. The sample of the study comprises of (21) companies listed in BB for year 2013.

Findings

The main findings are, the level of compliance varied by industry and the highest level of compliance reported for the investment sector whereas the lowest for the insurance industry. This result indicates that all listed companies are complying with IFRS 7 in terms of the standard disclosure requirements.

Practical implications

In this paper attempt has been made to support the argument of previous studies. The paper attempts to test and answer the research question; does the financial sector in Bahrain comply with IFRS 7? These results could lead to high level of awareness about the financial instruments. Adoption of the IFRS 7 could lead to high level of compliance and play a significant role in attracting global investors’ interest to the local markets, especially in a developing country like Bahrain.

Originality/value

This paper provides an insight from the reality of the financial market in Bahrain as a result of answering this question; does the financial sector in Bahrain comply with IFRS 7?

Keywords

Citation

Sarea, A.M. and Abdulla Al Dalal , Z. (2015), "The level of compliance with International Financial Reporting Standards (IFRS 7): Evidence from Bahrain Bourse", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 11 No. 3, pp. 231-244. https://doi.org/10.1108/WJEMSD-02-2015-0009

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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