Disclosure harmonization of accounting practices: the case for South Asia
Abstract
Purpose
The purpose of this study is to examine the extent of disclosure harmonization in selected accounting disclosure practices in three South Asian countries, namely, India, Pakistan and Bangladesh.
Design/methodology/approach
The study is based on a sample of 566 non‐financial companies for the financial year 1998. A total of 91 disclosure items were selected from 13 common IAS‐based accounting standards. The I index and chi‐square statistics are used to measure the degree of disclosure harmonization.
Findings
The values of the I index show a relatively higher degree of disclosure harmonization in the areas of inventories, cash flow statements, consolidated financial statements, investment in subsidiaries, and borrowing costs. A lower level of harmonization is observed in the areas of taxes on income, leases, retirement benefit costs, and investments.
Originality/value
These finding have implications for the national standard setters and regulators as well as the International Accounting Standards Board (IASB) and the South Asian Federation of Accountants (SAFA). These bodies may work together for the improvement of comparability of financial reporting in the region.
Keywords
Citation
Jahangir Ali, M. (2006), "Disclosure harmonization of accounting practices: the case for South Asia", Asian Review of Accounting, Vol. 14 No. 1/2, pp. 168-186. https://doi.org/10.1108/13217340610729527
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited