A Study at University of Bahrain Explores Adoption of IFRS (8) for Disclosure of Operating Segments

Sakhir – University of Bahrain (Khadija Abdusalem)
July 13, 2022

A study at the University of Bahrain found a positive correlation between firms’ characteristics (firm size and quality of the external auditor) and the level of application of the IFRS (8) “Operating Segments”. The study also found a negative correlation for other characteristics of the firm, including the business’s level of complexity and profitability.

This study is one of the first studies to examine the extent of IFRS 8 “Operating Segments” adoption and its relation to firms’ characteristics in the GCC region. This standard was issued in November 2006 replacing the previous standard, IAS 14 “Segment Reporting”.

Hadeel Yahya Al-Wadaei, master’s student in accounting from the College of Business Administration, presented the study under the title “Firm characteristics and the adoption of the operating segments accounting standard (IFRS 8): Evidence from GCC Countries.”.

The study examined the relationship between firms’ characteristics, and the extent of IFRS 8 adoption, concerning Segment Reporting, using a sample of companies listed in the GCC countries’ stock markets.

The student recommended future studies include other characteristics in firms and other independent variables not included in this study, and also presented the need for future studies to cover a longer time frame and proposed using different mechanisms to measure the adoption of the IFRS (8).

The panel committee consisted of Associate Professor in the Accounting Department, Dr. Abdulmohsen Mohammad Desouki, as a supervisor, the Associate Professor in the same department, Dr. Hala Elias, as an internal examiner, and the Associate Professor at King Saud University, Dr. Ahmed Zakaria Osaimi, as an external examiner.

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