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Compliance with accounting standards by financial Institutions: Some evidence from Bangladesh

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  • Islam, Majidul
  • Hossain, Ashrafee Tanvir

Abstract

As Bangladesh is going through socio-economic and political changes, this paper investigates the disclosures required by ‘Bangladesh Accounting Standards’ or ‘International Financial Reporting Standards’, as adopted/adapted in Bangladesh and whether affiliation with Big-4 accounting firms leads to better compliance with disclosure requirements. We analyze the financial statements of 26 banks on liquidity, concentrations of assets, liabilities and off-balance-sheet items, related-party transactions, and unconsolidated entities. Our results indicate that banks are not ensuring essential compliance with all disclosure items in national standards. Banks audited by Big-4 affiliates display better compliance in financial statements than those audited by non-affiliates, with some exceptions. Our research provided evidence that, in contrast to general understanding and expectation, Big-4 associates in developing country may not absolutely outperform local firms. We also find systematic non-compliance with provisions of standards that would be useful for inferring group membership despite compliance with other disclosure provisions.

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  • Islam, Majidul & Hossain, Ashrafee Tanvir, 2017. "Compliance with accounting standards by financial Institutions: Some evidence from Bangladesh," Research in Accounting Regulation, Elsevier, vol. 29(2), pages 145-151.
    • Handle: RePEc:eee:reacre:v:29:y:2017:i:2:p:145-151
    DOI: 10.1016/j.racreg.2017.09.006
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    Cited by:

    1. Nurunnabi, Mohammad, 2018. "Perceived costs and benefits of IFRS adoption in Saudi Arabia: An exploratory study," Research in Accounting Regulation, Elsevier, vol. 30(2), pages 166-175.

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