Appendix –1



Appendix –1

QUESTIONNAIRE

GLOBAL HARMONISATION AND CONVERGENCE OF ACCOUNTING STANDARDS

Company …………………….

Audit Firm ………………………..

1. Degree

a. PhD

b. Master

c. Bsc

d. Dip.

e. Others.........................................

2. Professional Qualification

a. CPA

b. CA

c. ACCA

d. CMA

e. Others ……………………………. .

3. Gender

a. Male

b. Female

4. Nationality

a. Local

b. Expatriate

5. Occupation / Position held

a. Partner

b. Audit Manager

c. Audit Supervisor

d. Auditor

e. Financial Controller

f. Chief Accountant

g. Accountant

h. Management Accountant

i. Finance Manager

j. Director

k. Chairman of audit committee

l. Any other (please specify) ……………………………….

6. Years of Experience

a. 0-5 years

b. 5-10 years

c. 10-15 years

d. 15+ years

Dear Reader, the purpose of this questionnaire is to obtain an understanding of how accountants and auditors in Bahrain view the possibility of a global adoption of IFRSs (convergence of accounting standards), and to assess the impact of the potential convergence on accountants and auditors in Bahrain. This survey is conducted in order to prepare a report titled “ IFRSs: Perceptions on Harmonization and Global Convergence.” Please choose the most appropriate answers from your point of view by using the following rating scale for each statement:

|Strongly agree (SA) |Agree (A) |Neutral (N) |Disagree (DA) |Strongly disagree |

| | | | |(SDA) |

|(5) |(4) |(3) |(2) |(1) |

1. The adoption of IFRSs by companies around the world is intended to achieve convergence and harmonization in accounting by eliminating national principles and practices. In your opinion, such an objective is

|Statement |SA |A |N |DA |SDA |

|a.) a worthwhile objective that can be fairly but gradually accomplished |5 |4 | 3 |2 |1 |

|b.) a worthwhile objective but there are still major challenges involved in a global |5 |4 | 3 |2 |1 |

|adoption of IFRSs | | | | | |

|c.) a highly idealistic objective that is impossible to accomplish |5 |4 | 3 |2 |1 |

|d.) such an objective is costly and time consuming and should not be sought |5 |4 | 3 |2 |1 |

2. In your opinion, the most important advantages of the global adoption of IFRSs include :

|Statement |SA |A |N |DA |SDA |

|a.) The standardization of accounting principles around the world will result in |5 |4 | 3 |2 |1 |

|greater comparability of financial performance | | | | | |

| b) Greater relevance, reliability, and transparency of financial information of |5 |4 | 3 |2 |1 |

|companies in different countries will be achieved | | | | | |

|c.) The IASB will be in a better position to enforce accounting standards through |5 |4 | 3 |2 |1 |

|national accounting bodies | | | | | |

|d) The cost of compliance of accounting standards will be reduced considerably |5 |4 | 3 |2 |1 |

|e) It will be easy to develop principle-based accounting standards |5 |4 | 3 |2 |1 |

|e.) The adoption of a universal set of standards reduces the possibility of illegal |5 |4 | 3 |2 |1 |

|acts, such as fraud | | | | | |

|d.) Other advantages ……………………………………………………………………………………………………………………………………………………………………………………………… |

3. In your opinion, the most challenging disadvantages faced by auditors and accountants in adopting IFRSs universally are:

|Statement |SA |A |N |DA |SDA |

|a.) Training of staff to understand and implement IFRS principles |5 |4 | 3 |2 |1 |

|b.) Developing the infrastructure and resources to support professionals working with|5 |4 | 3 |2 |1 |

|IFRSs | | | | | |

|c.) Applying audit firms’ existing quality-control procedures to the quality control |5 |4 | 3 |2 |1 |

|procedures relating to IFRSs | | | | | |

|d.) Different interpretations of IFRSs which may result in divergence |5 |4 | 3 |2 |1 |

4. In your opinion, the adoption of IFRSs globally would:

|Statement |SA |A |N |DA |SDA |

|a.) result in benefits at the international level that would outweigh the costs |5 |4 | 3 |2 |1 |

|b.) would be of little impact |5 |4 | 3 |2 |1 |

|c.) more cost-benefit analysis would be required before making such a decision |5 |4 | 3 |2 |1 |

5. In your opinion, the best possible approach for the adoption of a single set of accounting standards worldwide is

|Statement |SA |A |N |DA |SDA |

|a.) a direct adoption of IFRSs in place of national GAAPs without any additional |5 |4 | 3 |2 |1 |

|endorsement or review | | | | | |

|b.) An indirect adoption of IFRSs by modifying each country’s national standards so that |5 |4 | 3 |2 |1 |

|they are based on IFRSs | | | | | |

|c.) Each country can choose either a direct or indirect approach depending on the |5 |4 | 3 |2 |1 |

|country’s own perceptions of IFRSs and the country’s national factors | | | | | |

|d.) This is an issue that the IASB should decide |5 |4 | 3 |2 |1 |

|e.) Other Opinion (specify …. |5 |4 | 3 |2 |1 |

6. In most countries, accounting university graduates receive national examinations and licensing programs based on national accounting regimes (e.g. U.S. CPAs are tested on their knowledge of U.S. GAAPs). In your opinion,

|Statement |SA |A |N |DA |SDA |

|a.) the responsibility of training accountants for the adoption of IFRSs should lie on |5 |4 | 3 |2 |1 |

|university – level accounting programs | | | | | |

|b.) it is the responsibility of the audit firms to provide such training because the audit|5 |4 | 3 |2 |1 |

|firm itself can determine the extent of training required | | | | | |

|c.) the accountant should adapt himself/herself to such changes on his/her own |5 |4 | 3 |2 |1 |

|d.) it is the responsibility of the governments |5 |4 | 3 |2 |1 |

7. In addition to the mere adoption of IFRSs by a particular country, the true convergence with IFRSs requires developing a common understanding and interpretation of the IFRSs to prevent divergence. In your opinion, this responsibility of building a shared understanding of IFRSs is the responsibility of:

|Statement |SA |A |N |DA |SDA |

|a.) audit firms, who should, for instance, develop certain consultation networks |5 |4 | 3 |2 |1 |

|b.) the International Financial Reporting Interpretations Committee (IFRIC) |5 |4 | 3 |2 |1 |

|c.) the national regulators in a country |5 |4 | 3 |2 |1 |

|d.) a joint responsibility of audit firms, IFRIC, and national regulators |5 |4 | 3 |2 |1 |

8. In Bahrain and other Islamic countries, certain banks and companies follow Islamic conventions of conducting businesses, such as interest-free banking. In such cases, the adoption of IFRSs would cause great difficulties. In your opinion, such organizations should

|Statement |SA |A |N |DA |SDA |

|a.) follow Islamic Accounting Standards despite the convergence. |5 |4 | 3 |2 |1 |

|b.) be required to follow International Accounting Standards |5 |4 | 3 |2 |1 |

|c.) provide financial statements based on Islamic Standards and be required to provide |5 |4 | 3 |2 |1 |

|a reconciliation with IFRSs. | | | | | |

|d.) Other Solution. Please specify ………………………………………………………….. |

|………………………………………………………………………………………………. |

|……………………………………………………………………………………………… |

9. From your experience of the application of IFRSs in Bahrain, do you think that

|Statement |SA |A |N |DA |SDA |

|a.) IFRSs are sufficiently comprehensive to address all the accounting issues that are |5 |4 | 3 |2 |1 |

|encountered in all industries, and for all transactions | | | | | |

|b.) IFRSs adequately address most accounting issues yet are not completely applicable |5 |4 | 3 |2 |1 |

|to certain accounting practices such as the accounting for Islamic banks | | | | | |

|c.) IFRSs are based on Anglo-American thought and are therefore inapplicable to all |5 |4 | 3 |2 |1 |

|national environments | | | | | |

|d.) Other Opinion. Please specify ………………………………………………………………………………………... |

|………………………………………………………………………………………………… |

|………………………………………………………………………………………………… |

10.) Countries like the U.S. have their own highly reliable set of national GAAPs, and are thus reluctant to adopt International Standards. In your opinion,

|Statement |SA |A |N |DA |SDA |

|a.) IFRSs should be used by these countries in place of the national GAAPs |5 |4 | 3 |2 |1 |

|b.) Such countries’ national GAAPs are more reliable than IFRSs and should, thus, |5 |4 | 3 |2 |1 |

|continue to be used | | | | | |

|c.) IFRSs should be used, and then the financial information should be reconciled with|5 |4 | 3 |2 |1 |

|the national GAAPs | | | | | |

|d.) Other Opinion……………………………………………………...................................... |

|……………………………………………………………………………………………….. |

11. To what extent do you agree/disagree that IFRSs are principle-based accounting standards?

|Strongly agree (5) |Agree |Neutral |Disagree |Strongly disagree |

| |(4) |(3) |(2) |(1) |

| | | | | |

12. Please add any comments ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Thanks you for your co-operation.

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