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Compliance with International Accounting Standards Requirements among Omani Listed Companies

Journal of Administrative and Economics Science

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Title Compliance with International Accounting Standards Requirements among Omani Listed Companies
 
Creator Al-Jabri, Hamdan .
Hussain, Mostaq M
 
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.  Purpose:  There  are  several  calls  for  research  to  investigate  the  compliance with IASs/IFRSs. The  IOSCO,  IASC/IASB,  World  Bank,  International  Federation  of  Stock  Exchanges,  and  others  have encouraged  developing  and  emerging  nations  to  adopt  IASs/IFRSs  for  facilitating  the  development  of capital  markets  that  lead  to  economic  development. However,  studies  investigating  the  observance  of IASs/IFRSs  in  developing  countries  are  very  limited,  and  majority  of  the  studies  were  applied  to developed  countries.  Some  researchers  noted the paucity of such studies and called for further country-specific  research  in  this  area.  This  study  aims  to include  the  degree  of  compliance  between  Omani reporting practices and the IASs requirements.  Research Design: The ‘degree of compliance’ was measured operationally by different indices based on a checklist of IASs requirements related to the IASs revised as part of IASB Improvement Project.  Findings: The results of this study demonstrate that in practice Omani companies do not comply fully with the requirement of IASs. Some Omani companies do not follow IFRSs if they fell that the costs outweigh  the  benefits  to  them.  This  study  also  finds  that  the  level  of  compliance,  averaged  over  all companies, in Omani companies is about 79%. These findings support the Hypothesis of the study which suggests  that  Omani  listed  companies  do  not  comply fully  with  the  IASs’  requirements.  However,  the level of compliances with the IASs in Oman is higher than reported compliance in some other developing countries. Actual practices may not be the same as required practices for a number of reasons, though in Oman, all listed companies are required to prepare their financial statements in accordance with the IASs.  The  study  results  also  reveal  that  there  is  considerable  variation  between  individual  companies  in terms  of  the  level  of  compliance.  Further  study  can  investigate  reasons  for  the  variation  in  individual company  compliance  levels  and  examine  whether  these  levels  are  associated  with  other  company  related factors. The study also contains important lessons for international organizations interested in the diffusion of financial  reporting  standards  in  developing  countries.  Lessons  drawn  from  Oman  experience  could  be  of interest to regulators interested in improving compliance with accounting standards elsewhere.   Keywords: Developing Countries, IAS, IFRS, Oman,
 
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/506
 
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/506/492