The Level of Adoption of the International Accounting Standard 34 (IAS 34.) : The Case of Bahrain Listed Companies

The purpose of this study to explore the level of adoption of the International Accounting Standard 34 (IAS 34) in the preparation of interim reports by listed companies on Bahrain Stock Exchange (BSE). The data used in this exploratory study were based largely on information already published in the interim financial reports that are available at Bahrain Stock Exchange and on the websites of the listed companies. Neither IAS 34, nor does the national accounting legislation in Bahrain require firms to prepare interim financial statements . However, as elsewhere around the globe, companies in Bahrain prepare interim financial reports in compliance with the IAS 34. Not least because it is required for a company to be listed on Bahrain Stock Exchange (BSE). In addition, in order to maintain investor confidence, listed companies often exert considerable effort to disclose all necessary information that shows their financial position and ability to continue as a going concern through preparing more timely, costly interim reports. The results of this exploration reveal that the listed companies actually comply with the requirements of IAS 34, regardless of the high cost involved.