IDEAS home Printed from https://ideas.repec.org/a/eme/arjpps/arj-02-2015-0020.html
   My bibliography  Save this article

Determinants of accounting policy choices under international accounting standards

Author

Listed:
  • Muhammad Jahangir Ali
  • Kamran Ahmed

Abstract

Purpose - The purpose of this paper is to examine the determinants of accounting policy choices under International Accounting Standards (IASs) of listed firms in South Asia. Design/methodology/approach - We selected three IASs-based accounting policy choices from 369 listed companies in India, Pakistan and Bangladesh for the financial year 2007-2008. Findings - Our results show that firm size, investment opportunity set, leverage and ownership by the general public are significant determinants of accounting policy choice in South Asian countries. However, we do not find a significant relationship between firms’ accounting policy choices and profitability, assets-in-place and taxes. Practical implications - Our results suggest that as some flexibility exists in IASB’s accounting standards, this may allow managers to use income-increasing/decreasing methods. There is scope for regulators and standards setters to reduce the alternative methods which are likely improve firms’ reporting quality. Originality/value - Our study contributes to the understanding as to what determines managers’ choice of a particular accounting method allowed in IAS.

Suggested Citation

  • Muhammad Jahangir Ali & Kamran Ahmed, 2017. "Determinants of accounting policy choices under international accounting standards," Accounting Research Journal, Emerald Group Publishing Limited, vol. 30(4), pages 430-446, November.
    • Handle: RePEc:eme:arjpps:arj-02-2015-0020
    DOI: 10.1108/ARJ-02-2015-0020
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/ARJ-02-2015-0020/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/ARJ-02-2015-0020/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/ARJ-02-2015-0020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhuquan Wang & Javed Miraj, 2018. "Adoption of International Public Sector Accounting Standards in Public Sector of Developing Economies -Analysis of Five South Asian Countries," Research in World Economy, Research in World Economy, Sciedu Press, vol. 9(2), pages 44-51, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:arjpps:arj-02-2015-0020. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.