Abstract
This study examines accountants’ perception whether or not the following factors ــgovernment policy, capital market, economic growth, external environment/international exposure, professional bodies, education level of accountants, company size, initial cost of International Financial Reporting Standards (IFRSs) adoption and culture affect the adoption of IFRSs in Yemen. It also examines the differences of opinion among academicians and practitioners with regard to these factors. A questionnaire survey involving 41 Yemeni accounting postgraduate students in Malaysia’s public Universities was conducted. The results indicate that the majority of respondents believe that the lack of government policy, absence of capital market, lack of economic growth, lack of professional bodies, weakness in the education level of accountants, the small size of the companies and initial cost of IFRSs adoption affect the adoption of IFRSs in Yemen. The study also shows that the international environment has a weak effect on IFRSs adoption while the Yemeni culture does not affect IFRSs adoption. The finding may help both policy-makers and the Yemeni Association of Certified Public Accountants (YACPA) to consider these factors and make more precise decisions regarding IFRSs adoption.
Highlights
Growth in global capital market imposes adoption of the International Financial Reporting Standards (IFRSs) to many countries than ever before (Eng, Lin, & Figueiredo, 2018)
An electronic questionnaire was used to seek respondents’ opinion on whether or not the following factors ـــgovernment policy, capital market, economic growth, external environment/international exposure, professional bodies, education level of accountants, company size, the initial cost of IFRSs adoption and culture affect the adoption of IFRSs in Yemen
This study examines the accountants’ opinion on whether or not the following factors affect the adoption of IFRSs in Yemen: government policy, capital market, economic growth, external/international environment, professional bodies, education level of accountants, company size, initial cost of IFRSs adoption and culture
Summary
Growth in global capital market imposes adoption of the International Financial Reporting Standards (IFRSs) to many countries than ever before (Eng, Lin, & Figueiredo, 2018). Without a doubt, accounting practices have played a crucial role in the efficient functioning of capital markets (Choi & Meek, 2011). Different accounting standards across different countries do not help users, investors, in comparing financial statements of companies (Doupnik & Perera, 2007). To have more uniform accounting standards globally, a group of professional accounting practitioners established the International Accounting Standards Committee (IASC) in 1973. The main aim of the IASC is to formulate globally uniform accounting standards to reduce the inconsistencies in international accounting standards and reporting practices. IASs were proposed and the IASC has been championing for uniform and standardized accounting principles for over two decades (Carlson, 1997)
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