Is Brunei Ready to Adopt the International Accounting System (IAS)?

Business Journal for Entrepreneurs, Vol. 2013 Issue 1, p. 12-48

37 Pages Posted: 23 Mar 2013

See all articles by Mahani Hj. Hamdan

Mahani Hj. Hamdan

University of Brunei Darussalam

K C P Low

Kazakh Leading Academy of Architecture and Civil Engineering/ Kazakh American University (International Educational Corporation); University of the South Pacific; University of South Australia

Date Written: March 16, 2013

Abstract

This paper investigates the possibility of adopting international accounting standards (IAS) in a small developing country, Brunei Darussalam (Brunei). The study employs several factors which have been tested by researchers in the literature to examine the adoption of IAS in Brunei context (Ding et al. 2005; Ramanna and Sletten 2009; Zeghal and Mhedhbi 2006). Few of the factors include the level of economic growth, education, culture, legal origin, the economic theory of network effects, quality of accounting information, opportunity and switching costs, and the existence of capital market. The study is based on a qualitative research, where information was obtained from local newspapers and statistical yearbook, journal articles and online discussion. The result of the study reveals some issues that the country must fully consider before adopting IAS. Further investigation on the effect of IAS adoption on small and medium-sized financial statements is one potential area for future research.

Keywords: International accounting, Standards, IFRS adoption, Brunei, Culture, Melayu Islam Beraja (Malay Muslim Monarchy)

Suggested Citation

Hj. Hamdan, Mahani and Low, Kim Cheng Patrick, Is Brunei Ready to Adopt the International Accounting System (IAS)? (March 16, 2013). Business Journal for Entrepreneurs, Vol. 2013 Issue 1, p. 12-48. Available at SSRN: https://ssrn.com/abstract=2237733

Mahani Hj. Hamdan (Contact Author)

University of Brunei Darussalam ( email )

Kim Cheng Patrick Low

Kazakh Leading Academy of Architecture and Civil Engineering/ Kazakh American University (International Educational Corporation) ( email )

28, Ryskulbekov street
Almaty
Kazakhstan

University of the South Pacific ( email )

Laucala Campus
Suva
Fiji

University of South Australia

37-44 North Terrace, City West Campus
Adelaide, South Australia 5001
Australia

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