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The Relevance and Usefulness of IFRSs to Saudi Arabia

Journal of Administrative and Economics Science

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Title The Relevance and Usefulness of IFRSs to Saudi Arabia
 
Creator Alkhtani, Sultan .
 
Description Presented Paper in International Financial Reporting Standards (IFRS) Conference - Challenges & Opportunities 1st – 2nd May, 2012 Organized by College of Business & Economics, Qassim University, Saudi ArabiaAbstract. This paper investigates the suitability of International Financial Reporting Standards (IFRSs) to Saudi  Arabia  by  examining  the  perceptions  of  accounting  users  and  preparers  in  terms  of  costs  and benefits of the adoption of IFRSs. A questionnaire survey and series of interviews were conducted among preparers and users of external reports. The findings suggest that the adoption of IFRSs will be associated with  difficulties  and  costs  for  a  number  of  companies  on  the  Saudi  stock  market.  However,  the  results indicate that these problems and costs would apply more to small companies and local accounting firms rather than the Big Four, for whom the adoption of IFRSs will be advantageous. On the other hand, the findings  suggest  that  the  adoption  of  IFRSs  would  contribute  to  enhancing  the  quality  of  financial reporting. The results also reveal that financial reporting prepared on the basis of IFRSs provides more of the  information  required  for  decision-making.  The  results  also  suggest  that  there  is,  to  some  extent, agreement among participants as to the suitability of IFRSs to Saudi Arabia, and that their benefits would eventually overcome the initial problems that can arise from their adoption. The findings contribute to an awareness  of  the  problems  that  may  arise  when  developing  countries  make  the  transition  to  the  use  of IFRSs, the reasons for these problems and how they can be resolved. Furthermore, the results contribute to an understanding of the impact of IFRS adoption on the quality of financial reporting in Saudi Arabia.  Keywords: Saudi Arabia; IFRSs; Cost and Benefits.
 
Publisher Qassim University Academic Publishing and translation
 
Contributor —
 
Date 2012-04-26
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://publications.qu.edu.sa/ojs/index.php/economic/article/view/504
 
Source Journal Of Administrative And Economics Science; Vol 5, No 2
 
Language eng
 
Relation http://publications.qu.edu.sa/ojs/index.php/economic/article/view/504/490