Development of Accounting Standards and Adoption of IASs: Perceptions of Accountants from a Developing Country

Abstract

Arguments prevail in Bahrain over whether to establish a body for setting local accounting standards or to continue to encourage the application of international accounting standards (IASs). This debate is driven by the opinions and attitudes of various concerned groups, including auditors, corporate accountants, and public accountants. This study examines the perceptions of accountants regarding whether or not local accounting standards should be set in Bahrain and, if so, which would be the most appropriate agency to achieve this aim. In addition, the study examines whether organizations in Bahrain should continue to comply with IASs. It provides empirical findings on these issues based on a questionnaire of 52 accountants. The study concludes that organizations in Bahrain should continue to comply with IASs, but that the application of these standards needs to be regulated. Differences in the socio‐political environment do not make IASs of less significance to users in Bahrain. Further, it is found that the need for compliance with IASs will better enhance users' understanding of accounting concepts and financial statements. The study recommends the establishment of a body of professional accountants who will act as the interpreters of IASs in Bahrain's environment.

Citation

Joshi, P. and Al‐Basteki, H. (1999), "Development of Accounting Standards and Adoption of IASs: Perceptions of Accountants from a Developing Country", Asian Review of Accounting, Vol. 7 No. 2, pp. 96-117. https://doi.org/10.1108/eb060716