The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain

Isa Adnan Budaraj; Adel Mohammed Sarea

doi:doi:10.11648/j.jim.20150405.22

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The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain

Isa Adnan Budaraj, Adel Mohammed Sarea

Published in Journal of Investment and Management (Volume 4, Issue 5)

Received: 21 July 2015 Accepted: 4 August 2015 Published: 13 August 2015

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Abstract

This Study examines the association between five firm-specific characteristics and the level of compliance with International Accounting Standards (IAS 18) by listed Firms in Bahrain Bourse. A self-constructed compliance checklist was developed and the compliance index was derived to represent the level of compliance among publically traded firms in Bahrain Bourse for the year 2013 to IAS 18 disclosure requirements. The results detected an aggregate mean compliance of 63% to IAS 18 disclosure requirements. A significant positive relationship was found between the level of compliance and a company’s size, and auditor type. A significant negative relationship was found between the IAS 18 disclosure level and a company’s debt level (leverage). However, a significant relationship between the level of IAS 18 disclosure level and a company’s profits or age could not be established in this research. The results of this research can benefit investors and companies as well, as the results will determine what level of compliance to IAS 18 are listed companies in Bahrain Bourse are committed to, and how transparent are the revenues they are reporting in their financials

Published in	Journal of Investment and Management (Volume 4, Issue 5)
DOI	10.11648/j.jim.20150405.22
Page(s)	216-227
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Corporate Financial Reporting, IAS 18, Disclosure, Bahrain Bourse

References

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APA Style

Isa Adnan Budaraj, Adel Mohammed Sarea. (2015). The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain. Journal of Investment and Management, 4(5), 216-227. https://doi.org/10.11648/j.jim.20150405.22

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ACS Style

Isa Adnan Budaraj; Adel Mohammed Sarea. The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain. J. Invest. Manag. 2015, 4(5), 216-227. doi: 10.11648/j.jim.20150405.22

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AMA Style

Isa Adnan Budaraj, Adel Mohammed Sarea. The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain. J Invest Manag. 2015;4(5):216-227. doi: 10.11648/j.jim.20150405.22

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@article{10.11648/j.jim.20150405.22,
  author = {Isa Adnan Budaraj and Adel Mohammed Sarea},
  title = {The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain},
  journal = {Journal of Investment and Management},
  volume = {4},
  number = {5},
  pages = {216-227},
  doi = {10.11648/j.jim.20150405.22},
  url = {https://doi.org/10.11648/j.jim.20150405.22},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20150405.22},
  abstract = {This Study examines the association between five firm-specific characteristics and the level of compliance with International Accounting Standards (IAS 18) by listed Firms in Bahrain Bourse. A self-constructed compliance checklist was developed and the compliance index was derived to represent the level of compliance among publically traded firms in Bahrain Bourse for the year 2013 to IAS 18 disclosure requirements. The results detected an aggregate mean compliance of 63% to IAS 18 disclosure requirements. A significant positive relationship was found between the level of compliance and a company’s size, and auditor type. A significant negative relationship was found between the IAS 18 disclosure level and a company’s debt level (leverage). However, a significant relationship between the level of IAS 18 disclosure level and a company’s profits or age could not be established in this research. The results of this research can benefit investors and companies as well, as the results will determine what level of compliance to IAS 18 are listed companies in Bahrain Bourse are committed to, and how transparent are the revenues they are reporting in their financials},
 year = {2015}
}

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TY  - JOUR
T1  - The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain
AU  - Isa Adnan Budaraj
AU  - Adel Mohammed Sarea
Y1  - 2015/08/13
PY  - 2015
N1  - https://doi.org/10.11648/j.jim.20150405.22
DO  - 10.11648/j.jim.20150405.22
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 216
EP  - 227
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20150405.22
AB  - This Study examines the association between five firm-specific characteristics and the level of compliance with International Accounting Standards (IAS 18) by listed Firms in Bahrain Bourse. A self-constructed compliance checklist was developed and the compliance index was derived to represent the level of compliance among publically traded firms in Bahrain Bourse for the year 2013 to IAS 18 disclosure requirements. The results detected an aggregate mean compliance of 63% to IAS 18 disclosure requirements. A significant positive relationship was found between the level of compliance and a company’s size, and auditor type. A significant negative relationship was found between the IAS 18 disclosure level and a company’s debt level (leverage). However, a significant relationship between the level of IAS 18 disclosure level and a company’s profits or age could not be established in this research. The results of this research can benefit investors and companies as well, as the results will determine what level of compliance to IAS 18 are listed companies in Bahrain Bourse are committed to, and how transparent are the revenues they are reporting in their financials
VL  - 4
IS  - 5
ER  -

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Author Information

Isa Adnan Budaraj

MBA program, Ahlia University of Bahrain, Manama, Kingdom of Bahrain
Adel Mohammed Sarea

Accounting and Economics Department, Ahlia University of Bahrain, Manama, Kingdom of Bahrain

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APA Style

Isa Adnan Budaraj, Adel Mohammed Sarea. (2015). The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain. Journal of Investment and Management, 4(5), 216-227. https://doi.org/10.11648/j.jim.20150405.22

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ACS Style

Isa Adnan Budaraj; Adel Mohammed Sarea. The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain. J. Invest. Manag. 2015, 4(5), 216-227. doi: 10.11648/j.jim.20150405.22

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AMA Style

Isa Adnan Budaraj, Adel Mohammed Sarea. The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain. J Invest Manag. 2015;4(5):216-227. doi: 10.11648/j.jim.20150405.22

Copy | Download

@article{10.11648/j.jim.20150405.22,
  author = {Isa Adnan Budaraj and Adel Mohammed Sarea},
  title = {The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain},
  journal = {Journal of Investment and Management},
  volume = {4},
  number = {5},
  pages = {216-227},
  doi = {10.11648/j.jim.20150405.22},
  url = {https://doi.org/10.11648/j.jim.20150405.22},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20150405.22},
  abstract = {This Study examines the association between five firm-specific characteristics and the level of compliance with International Accounting Standards (IAS 18) by listed Firms in Bahrain Bourse. A self-constructed compliance checklist was developed and the compliance index was derived to represent the level of compliance among publically traded firms in Bahrain Bourse for the year 2013 to IAS 18 disclosure requirements. The results detected an aggregate mean compliance of 63% to IAS 18 disclosure requirements. A significant positive relationship was found between the level of compliance and a company’s size, and auditor type. A significant negative relationship was found between the IAS 18 disclosure level and a company’s debt level (leverage). However, a significant relationship between the level of IAS 18 disclosure level and a company’s profits or age could not be established in this research. The results of this research can benefit investors and companies as well, as the results will determine what level of compliance to IAS 18 are listed companies in Bahrain Bourse are committed to, and how transparent are the revenues they are reporting in their financials},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - The Level of Compliance with International Accounting Standard IAS 18 by Listed Firms in Bahrain
AU  - Isa Adnan Budaraj
AU  - Adel Mohammed Sarea
Y1  - 2015/08/13
PY  - 2015
N1  - https://doi.org/10.11648/j.jim.20150405.22
DO  - 10.11648/j.jim.20150405.22
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 216
EP  - 227
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20150405.22
AB  - This Study examines the association between five firm-specific characteristics and the level of compliance with International Accounting Standards (IAS 18) by listed Firms in Bahrain Bourse. A self-constructed compliance checklist was developed and the compliance index was derived to represent the level of compliance among publically traded firms in Bahrain Bourse for the year 2013 to IAS 18 disclosure requirements. The results detected an aggregate mean compliance of 63% to IAS 18 disclosure requirements. A significant positive relationship was found between the level of compliance and a company’s size, and auditor type. A significant negative relationship was found between the IAS 18 disclosure level and a company’s debt level (leverage). However, a significant relationship between the level of IAS 18 disclosure level and a company’s profits or age could not be established in this research. The results of this research can benefit investors and companies as well, as the results will determine what level of compliance to IAS 18 are listed companies in Bahrain Bourse are committed to, and how transparent are the revenues they are reporting in their financials
VL  - 4
IS  - 5
ER  -

Copy | Download