Accountants’ Perception on the Factors Affecting the Adoption of International Financial Reporting Standards in Yemen

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.

Corporate Governance Mechanisms, Whistle-Blowing Policy and Real Earnings Management

“…REM is a new issue (Sun, Lan, & Liu, 2014), which has not been adequately addressed by most regulators (Francis, Hasan, & Li, 2016), and not been much investigated in Malaysia (Kalgo, Noordin, Nahar, & Turmin, 2015). It has been argued that managers have turned away from AEM to REM (Nia, Sinnadurai, Sanusi, & Hermawan, 2017), particularly following the implementation of the International Financial Reporting Standards (IFRSs) (Khoo & Ahmad-Zaluki, 2015;Wan Ismail, Kamarudin, Zijl, & Dunstan, 2013) introduced by the International Accounting Standards Board (Al-Absy & Ku Ismail, 2019; Al-Absy, Ku Ismail, & Al-Dubai, 2016). Like in many other countries, some evidence on REM in Malaysia has been documented.…”