Empirical evidence of the suitability of IFRS in emerging markets

Abstract

Purpose

The purpose of this study was to assess the suitability of International Financial Reporting Standards (IFRS) in emerging markets such as Qatar. The current research attempts to obtain insights into the advantages and disadvantages of IFRS implementation in Qatar based on the perceptions of top management, academics in accounting and external auditors.

Design/methodology/approach

A questionnaire survey was the main tool used in this research. A total of 120 questionnaires were distributed to financial managers, academics and external auditors. Of the 97 replies (80 per cent), 91 completed questionnaires were analysed.

Findings

The results suggest that IFRS implementation is suitable for the business environment of Qatar because the adoption of IFRS provides many advantages to the Qatari business environment, regulations and stock market without incurring additional major costs. Moreover, IFRS imposes no major constraints on the business environment or Islamic social responsibility and education in Qatar.

Practical implications

The results of this research paper will help regulators in Qatar and other Gulf Cooperation Council (GCC) countries develop accounting regulations.

Originality/value

This paper provides empirical evidence of the suitability of IFRS in emerging markets in general and the GCC region in particular and enhances the level of understanding of IFRS worldwide.

Citation

Mardini, G.H., Wadi, R.S. and Mah’d, O.A. (2019), "Empirical evidence of the suitability of IFRS in emerging markets", Accounting Research Journal, Vol. 32 No. 4, pp. 553-567. https://doi.org/10.1108/ARJ-04-2017-0065