Global Advanced Research Journal of Economics, Accounting and Finance (GARJEAF)
February 2020 Vol. 7(1), pp. 001-005
Copyright © 2020 Global Advanced Research Journals


Full Length Research Paper

The level of compliance with the International Financial Reporting Standards 10 (IFRS 10) The Case of Bahrain Listed Companies

Abdulla A. Rahman Ali

Assistant Professor University of Bahrain College of Business Administration Department of Accounting Kingdom of Bahrain

Corresponding Author Email:

Accepted 21 February, 2020


By the early 1970s, harmonization of accounting standards provoked heated debate between proponents and opponents. Proponents assert thatharmonization facilitates understanding of financial statements and comparison between firms worldwide. Opponents, on the other hand, insist that social and cultural factors must be at the heart of accounting standards.  Harmonization (Standardization) of accounting standards means developing a single set of accounting standards to be applied worldwide by multinational enterprises. At present uniform accounting standards (IFRS) are sweeping the globewith varying degrees of success. The purpose of this paper is to explore the level of compliance of International Financial Reporting Standard10,(IFRS 10) by companieslisted on the Bahrain Stock Exchange (BSE),and how it affected consolidated financial statements. As elsewhere listed companies that have a controlling interest in one or more subsidiaries must produce two sets of financial statements (dual reporting), one at a subsidiary level, another at the group level. Data used in this research was obtained from published financial statements on the websites of the listed companies on the Bahrain Stock Exchange (BSE). as well as questionnaire sent to CFO regarding size, age, and the external auditor. The paper concludes that listed companies in Bahrain comply with the IFRS 10, with varying degree across various business sectors. The study indicates that there is a direct positive relationship between size and type of external auditor, but scanty relationship exists with age.

Keywords: Consolidated Financial Statements Bahrain Stock Exchange (BSE)., International Financial Reporting Standard ( IFRS 10), Listed companies.



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