Gaps in translating IAS 1 into practice: An examination of Financial Statements of Bangladeshi companies

Abstract

In recent days, the complication in business has made accounting bookkeeping more difficult than before. The use of technology, tools and software have been a major breakthrough for accounting professionals. However, the basics of accounting lessons are used too in order to take managerial decisions. This study has aimed at finding out the reasons most accounting people find it hard to render accounting transactions and prepare an error-free financial statement. A set of samples has been used and a questionnaire has been prepared to reach the conclusion. Whether the problem in financial statement preparation arises because of lack of practice in any professional’s academic period or it arises as a result of the general rules and regulations set out by the board or committee. The Questionnaire consists of questions regarding these problems. Through the use of descriptive statistics, it has been found that the survey questionnaire was consistent and reliability was tested with the use of Cronbach’s alpha. It has also been found that the majority of people who use accounting software for daily records find few statements such as balance sheet, cashflow statement and shareholder’s equity statement to be difficult to prepare. The goal of this study is to understand the practical aspect of preparing financial statements in light of IAS 1 and have a general idea of what can be instigated for eradicating this deficiency. Expectantly, this research will help others to further dive into this problem and come up with better solutions.