TY - JOUR
T1 - An investigation into the suitability of the international accounting standards to the United Arab Emirates environment
AU - Aljifri, Khaled
AU - Khasharmeh, Hussein
N1 - Funding Information:
The authors wish to thank the two anonymous reviewers for their invaluable comments and suggestions. This work was financially supported by the Research Affairs at the UAE University under a Contract no. 01-01-4-11/03.
PY - 2006/10
Y1 - 2006/10
N2 - 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.
AB - 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.
KW - Harmonization
KW - IAS
KW - IASB
KW - IFRS
KW - International accounting standards
KW - United Arab Emirates
KW - Voluntary disclosure
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U2 - 10.1016/j.ibusrev.2006.05.009
DO - 10.1016/j.ibusrev.2006.05.009
M3 - Article
AN - SCOPUS:33749138636
SN - 0969-5931
VL - 15
SP - 505
EP - 526
JO - International Business Review
JF - International Business Review
IS - 5
ER -