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An investigation into the suitability of the international accounting standards to the United Arab Emirates environment

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  • Aljifri, Khaled
  • Khasharmeh, Hussein

Abstract

This study is an attempt to investigate empirically the suitability of the international accounting standards (IASs) to the United Arab Emirates (UAE) environment. A variety of parametric and nonparametric approaches were used to examine the underlying factors that could affect the level of adoption of IASs and to evaluate the suitability of such adoption to the UAE environment. The major finding of this study is that the companies examined have vigorously adopted IASs and 87 percent of the companies disclosed their financial information in the English language which can be considered as a robust factor for adopting IASs. This study finds that the size of the companies (as measured by total assets) in the UAE has a significant effect on the level of adoption of IASs. However, the type of sector and the trading status (listed or unlisted) have no significant effect on the level of adoption of IASs. This study also tests to determine if a general consensus exists between the user groups of financial information (auditors, brokers, finance managers, and financial analysts) regarding their perception of the adoption of IASs in the UAE. It is found that there is a general consensus among the user groups on the suitability of adoption of IASs in the UAE.

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  • Aljifri, Khaled & Khasharmeh, Hussein, 2006. "An investigation into the suitability of the international accounting standards to the United Arab Emirates environment," International Business Review, Elsevier, vol. 15(5), pages 505-526, October.
    • Handle: RePEc:eee:iburev:v:15:y:2006:i:5:p:505-526
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    2. Mujeeb Saif Mohsen Al-Absy & Ku Nor Izah Ku Ismail, 2019. "Accountants¡¯ Perception on the Factors Affecting the Adoption of International Financial Reporting Standards in Yemen," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(4), pages 128-142, July.
    3. Nadia Zahoor & Francis Donbesuur & Zaheer Khan & Shlomo Y. Tarba & Cary L. Cooper, 2023. "Revisiting the Accelerated Internationalization of Emerging Market SMEs: The Roles of Firms’ Collaborations and Environmental Management Practices," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    4. Wafaa Salah & Abdallah Abdel-Salam, 2019. "The Effects of International Financial Reporting Standards on Financial Reporting Quality," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 5(3), pages 221-242, July.
    5. Zahoor, Nadia & Adomako, Samuel, 2023. "Be open to failure: Open innovation failure in dynamic environments," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    6. Abdulkareem Alzarouni & Khaled Aljifri & Chew Ng & Mohammad Iqbal Tahir, 2011. "The Usefulness Of Corporate Financial Reports: Evidence From The United Arab Emirates," Accounting & Taxation, The Institute for Business and Finance Research, vol. 3(2), pages 17-37.
    7. Hussein Ali Khasharmeh & Khaled Aljifri, 2010. "The Timeliness Of Annual Reports In Bahrain And The United Arab Emirates: An Empirical Comparative Study," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 4(1), pages 51-71.
    8. Encarna Guillamón-Saorín & Carlos M. P. Sousa, 2014. "Voluntary Disclosure of Press Releases and the Importance of Timing: A Comparative Study of the UK and Spain," Management International Review, Springer, vol. 54(1), pages 71-106, February.
    9. Enas Abdullah Hassan, 2020. "The Economic Consequence Of International Financial Reporting Standards Adoption: Evidence From Corporate Tax Avoidance In Gulf States," Accounting & Taxation, The Institute for Business and Finance Research, vol. 12(1), pages 45-65.
    10. Konstantinos P. Papadatos & Athanasios P. Bellas, 2011. "Applying IFRS Mandatory: Evidence from Greek Listed Companies," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 71-96.
    11. Mostafa Kamal Hassan, 2009. "UAE corporations-specific characteristics and level of risk disclosure," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(7), pages 668-687, July.
    12. Guillamon-Saorin, Encarna & Sousa, Carlos M.P., 2010. "Press release disclosures in Spain and the UK," International Business Review, Elsevier, vol. 19(1), pages 1-15, February.
    13. Uyar, Ali & Güngörmüş, Ali Haydar, 2013. "Perceptions and knowledge of accounting professionals on IFRS for SMEs: Evidence from Turkey," Research in Accounting Regulation, Elsevier, vol. 25(1), pages 77-87.
    14. Jamal Barzegari Khanagha, 2011. "Value Relevance of Accounting Information in the United Arab Emirates," International Journal of Economics and Financial Issues, Econjournals, vol. 1(2), pages 33-45, June.

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