Evaluating International Financial Reporting Standards and Generally Accepted Accounting Principles in a Local Context

A Case from Pakistan

Authors

  • Mehwish Basit Hussain Shaheed Zulfiqar Ali Bhutto Institute of Science & Technology - Pakistan

DOI:

https://doi.org/10.48112/aessr.v2i2.363

Abstract

Abstract Views: 272

International Financial Reporting Standards (IFRS) and the local Generally Accepted Accounting Principles (GAAP) are designed to ensure that financial information and financial reports presented to consumers are credible and comparable. The significance and implementation of the reporting rules in Pakistan are examined in this study, as well as how conflict situations affect this issue. Pakistan has a growing economy it is therefore, critical to ensure that the reporting requirements meet international standards, so that parent firms investing here do not have any reporting issues.To conduct this study, qualitative research paradigm was selected and purposive sampling was used. In-depth individual interviews were conducted with five participants: three male and two females between the ages of 45-50, working at upper management level. The interview protocol was self-developed by taking into consideration the objectives, research questions, and literature review. The main findings indicate that IFRS should be adopted for the best possible results, although it is difficult to achieve a 100% adoption due to the prevailing conflicts. Hence, a uniform and formal procedure to adopt in conflicting situations should be communicated. The findings will be beneficial for researchers and auditing firms.

Keywords:

compliance, GAAP, IFRS, local context, transparency

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Published

2022-08-31

How to Cite

Hussain, M. B. (2022). Evaluating International Financial Reporting Standards and Generally Accepted Accounting Principles in a Local Context: A Case from Pakistan. Academy of Education and Social Sciences Review, 2(2), 70–80. https://doi.org/10.48112/aessr.v2i2.363

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