IFRS Compliance and Nonfinancial Information in Annual Reports of Malaysian Firms

The IUP Journal of Accounting Research & Audit Practices, Vol. XII, No. 4, October 2013, pp. 7-24

Posted: 8 Jul 2014

See all articles by Daw Tin Hla

Daw Tin Hla

Universiti Malaysia Sarawak (UNIMAS)

Abu Hassan Bin Md. Isa

Universiti Malaysia Sarawak (UNIMAS)

Dr. Junaid Mohd. Hanif Shaikh

Independent

Date Written: June 25, 2014

Abstract

This study analyzes the level of International Financial Reporting Standards (IFRS) compliance practice by the nonfinancial corporations from the different sectors, listed on the main market of Bursa Malaysia. It also analyzes the association between the level of IFRS compliance practice and nonfinancial information like early adoption of IFRS, good corporate governance practice, transparency and disclosure in their annual reports, etc. Research methodology includes content analysis to measure the level of IFRS compliance practice in annual reports of the firms, based on the measurement attributes of disclosure requirements of commonly used 14 IFRS. Multiple regression model estimates the instrumental nonfinancial variables that are accounted for the financial reporting with higher IFRS compliance practice by the firms in Malaysia. The findings highlight that financial reporting with the higher level of IFRS compliance in the annual reports is positively associated with nonfinancial factors like early adoption of IFRS, corporate governance, and transparency and disclosure practice. This study contributes to the evidence of higher IFRS compliance practice by the firms in Malaysia, and reveals the significant role of nonfinancial factors in achieving the mission of full convergence with IFRS in the internationalization of accounting in Malaysia.

Suggested Citation

Hla, Daw Tin and Isa, Abu Hassan Bin Md. and Shaikh, Dr. Junaid Mohd. Hanif, IFRS Compliance and Nonfinancial Information in Annual Reports of Malaysian Firms (June 25, 2014). The IUP Journal of Accounting Research & Audit Practices, Vol. XII, No. 4, October 2013, pp. 7-24, Available at SSRN: https://ssrn.com/abstract=2458874

Daw Tin Hla (Contact Author)

Universiti Malaysia Sarawak (UNIMAS) ( email )

Kota Samarahan, Sarawak 94300
Malaysia

Abu Hassan Bin Md. Isa

Universiti Malaysia Sarawak (UNIMAS) ( email )

Kota Samarahan, Sarawak 94300
Malaysia
6082584491 (Phone)
6082584451 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
1,061
PlumX Metrics