Development of Accounting Regulations and Practices in Kuwait: An Analytical Review

Hesham Almujamed, Yasean Tahat, Mohamed Aboelhamd Omran, Theresa Dunne (Lead / Corresponding author)

    Research output: Contribution to journalArticle

    24 Downloads (Pure)

    Abstract

    Purpose:
    This study explores the development of accounting regulations and practices in the State of Kuwait with an emphasis on exposing key influences. Further, the study aims to provide an institutional insight into Kuwait's current accounting practices and its potential for advancement. A number of key institutional issues regarding the development of accounting are addressed including economic and political influences, the legal system classification, and cultural settings. In addition, issues affecting decision to adopt International Financial Reporting Standards (IAS/IFRS) and the role of the accounting profession in Kuwait are investigated.

    Design/Methodology/Approach:
    We adopt an institutional approach in order to facilitate an understanding of the role institutional factors have played on accounting practices in Kuwait. Our aim is to understand current practice and to attempt to influence future practice by making policy recommendations and further research suggestions.

    Findings:
    It is clear that economic, political, and legal factors are directly linked to specific features of the accounting system in Kuwait; specifically, the Kuwaiti parliament is a key player in the formation of all economic and political policies issued regarding business practices in general, and accounting ones in particular. In addition, the accounting profession could have a key role to play in shaping systems going forward. However, the professions need to assert themselves and make sure that their voices are not lost in a sea of competing concerns regarding regulatory reform.

    Research Limitations/Implications:
    This study should be of interest to academicians, practitioners and regulators of other countries, especially developing countries, who seek to develop their accounting disclosures and practices.

    Originality/Value:
    This analytical review brings together a diverse body of knowledge and attempts to understand the accounting environment in Kuwait as a coherent hole. Such a holistic approach should facilitate a clear understanding of current practices and serve to guide future accounting regulatory reform.
    Original languageEnglish
    Pages (from-to)14-28
    JournalJournal of Corporate Accounting and Finance
    Volume28
    Issue number6
    Early online date16 Aug 2017
    Publication statusPublished - 16 Aug 2017

    Fingerprint

    Accounting practices
    Kuwait
    Accounting regulation
    Accounting profession
    Economics
    Regulatory reform
    Business practices
    Political economics
    Political influence
    Factors
    Legal system
    Design methodology
    Policy making
    Developing countries
    Accounting disclosure
    Institutional factors
    Body of knowledge
    Parliament
    Holistic approach
    International Financial Reporting Standards

    Keywords

    • Accounting practices
    • corporate governance
    • accounting regulation
    • capital market
    • emerging economies
    • IAS/IFRS
    • Kuwait

    Cite this

    Almujamed, Hesham ; Tahat, Yasean ; Omran, Mohamed Aboelhamd ; Dunne, Theresa. / Development of Accounting Regulations and Practices in Kuwait : An Analytical Review. In: Journal of Corporate Accounting and Finance . 2017 ; Vol. 28, No. 6. pp. 14-28.
    @article{8b43990f51b84898ac22dc23d41e6e1f,
    title = "Development of Accounting Regulations and Practices in Kuwait: An Analytical Review",
    abstract = "Purpose:This study explores the development of accounting regulations and practices in the State of Kuwait with an emphasis on exposing key influences. Further, the study aims to provide an institutional insight into Kuwait's current accounting practices and its potential for advancement. A number of key institutional issues regarding the development of accounting are addressed including economic and political influences, the legal system classification, and cultural settings. In addition, issues affecting decision to adopt International Financial Reporting Standards (IAS/IFRS) and the role of the accounting profession in Kuwait are investigated.Design/Methodology/Approach:We adopt an institutional approach in order to facilitate an understanding of the role institutional factors have played on accounting practices in Kuwait. Our aim is to understand current practice and to attempt to influence future practice by making policy recommendations and further research suggestions.Findings:It is clear that economic, political, and legal factors are directly linked to specific features of the accounting system in Kuwait; specifically, the Kuwaiti parliament is a key player in the formation of all economic and political policies issued regarding business practices in general, and accounting ones in particular. In addition, the accounting profession could have a key role to play in shaping systems going forward. However, the professions need to assert themselves and make sure that their voices are not lost in a sea of competing concerns regarding regulatory reform. Research Limitations/Implications:This study should be of interest to academicians, practitioners and regulators of other countries, especially developing countries, who seek to develop their accounting disclosures and practices.Originality/Value:This analytical review brings together a diverse body of knowledge and attempts to understand the accounting environment in Kuwait as a coherent hole. Such a holistic approach should facilitate a clear understanding of current practices and serve to guide future accounting regulatory reform.",
    keywords = "Accounting practices, corporate governance, accounting regulation, capital market, emerging economies, IAS/IFRS, Kuwait",
    author = "Hesham Almujamed and Yasean Tahat and Omran, {Mohamed Aboelhamd} and Theresa Dunne",
    note = "no funding info",
    year = "2017",
    month = "8",
    day = "16",
    language = "English",
    volume = "28",
    pages = "14--28",
    journal = "Journal of Corporate Accounting and Finance",
    issn = "1044-8136",
    publisher = "Wiley",
    number = "6",

    }

    Development of Accounting Regulations and Practices in Kuwait : An Analytical Review. / Almujamed, Hesham; Tahat, Yasean; Omran, Mohamed Aboelhamd; Dunne, Theresa (Lead / Corresponding author).

    In: Journal of Corporate Accounting and Finance , Vol. 28, No. 6, 16.08.2017, p. 14-28.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - Development of Accounting Regulations and Practices in Kuwait

    T2 - An Analytical Review

    AU - Almujamed, Hesham

    AU - Tahat, Yasean

    AU - Omran, Mohamed Aboelhamd

    AU - Dunne, Theresa

    N1 - no funding info

    PY - 2017/8/16

    Y1 - 2017/8/16

    N2 - Purpose:This study explores the development of accounting regulations and practices in the State of Kuwait with an emphasis on exposing key influences. Further, the study aims to provide an institutional insight into Kuwait's current accounting practices and its potential for advancement. A number of key institutional issues regarding the development of accounting are addressed including economic and political influences, the legal system classification, and cultural settings. In addition, issues affecting decision to adopt International Financial Reporting Standards (IAS/IFRS) and the role of the accounting profession in Kuwait are investigated.Design/Methodology/Approach:We adopt an institutional approach in order to facilitate an understanding of the role institutional factors have played on accounting practices in Kuwait. Our aim is to understand current practice and to attempt to influence future practice by making policy recommendations and further research suggestions.Findings:It is clear that economic, political, and legal factors are directly linked to specific features of the accounting system in Kuwait; specifically, the Kuwaiti parliament is a key player in the formation of all economic and political policies issued regarding business practices in general, and accounting ones in particular. In addition, the accounting profession could have a key role to play in shaping systems going forward. However, the professions need to assert themselves and make sure that their voices are not lost in a sea of competing concerns regarding regulatory reform. Research Limitations/Implications:This study should be of interest to academicians, practitioners and regulators of other countries, especially developing countries, who seek to develop their accounting disclosures and practices.Originality/Value:This analytical review brings together a diverse body of knowledge and attempts to understand the accounting environment in Kuwait as a coherent hole. Such a holistic approach should facilitate a clear understanding of current practices and serve to guide future accounting regulatory reform.

    AB - Purpose:This study explores the development of accounting regulations and practices in the State of Kuwait with an emphasis on exposing key influences. Further, the study aims to provide an institutional insight into Kuwait's current accounting practices and its potential for advancement. A number of key institutional issues regarding the development of accounting are addressed including economic and political influences, the legal system classification, and cultural settings. In addition, issues affecting decision to adopt International Financial Reporting Standards (IAS/IFRS) and the role of the accounting profession in Kuwait are investigated.Design/Methodology/Approach:We adopt an institutional approach in order to facilitate an understanding of the role institutional factors have played on accounting practices in Kuwait. Our aim is to understand current practice and to attempt to influence future practice by making policy recommendations and further research suggestions.Findings:It is clear that economic, political, and legal factors are directly linked to specific features of the accounting system in Kuwait; specifically, the Kuwaiti parliament is a key player in the formation of all economic and political policies issued regarding business practices in general, and accounting ones in particular. In addition, the accounting profession could have a key role to play in shaping systems going forward. However, the professions need to assert themselves and make sure that their voices are not lost in a sea of competing concerns regarding regulatory reform. Research Limitations/Implications:This study should be of interest to academicians, practitioners and regulators of other countries, especially developing countries, who seek to develop their accounting disclosures and practices.Originality/Value:This analytical review brings together a diverse body of knowledge and attempts to understand the accounting environment in Kuwait as a coherent hole. Such a holistic approach should facilitate a clear understanding of current practices and serve to guide future accounting regulatory reform.

    KW - Accounting practices

    KW - corporate governance

    KW - accounting regulation

    KW - capital market

    KW - emerging economies

    KW - IAS/IFRS

    KW - Kuwait

    M3 - Article

    VL - 28

    SP - 14

    EP - 28

    JO - Journal of Corporate Accounting and Finance

    JF - Journal of Corporate Accounting and Finance

    SN - 1044-8136

    IS - 6

    ER -