Browsing by Author "Khan, Prof. Md. Muinuddin"

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Adoption of International Financial Reporting Standard (IFRS) and its Consequences on Financial Reporting Quality: A Review
(Faculty of Business Studies, BUFT, 2021-08-01) Adnan, ATM; Khan, Prof. Md. Muinuddin
Purpose: The broad adoption of IFRS around the world, aided by the IAS Regulation in 2002, created a critical foundation for numerous academic studies that examined various viewpoints on voluntary or obligatory IFRS adoption. As a result, this study aims to provide a comprehensive image of the advantages and disadvantages of IFRS implementation, as well as the implications for financial reporting quality. We highlight two financial reporting performance indices, Earning Management (EM) and Value Relevance (VR), to determine the possible effect of IFRS implementation on the quality of financial reporting activities. Methodology: This paper examines the literature on the implications of mandatory or voluntary implementation of IFRS and the impact on accounting reporting quality that is expected to result from the transition. This paper takes a retrospective view, focusing on accounting research published in leading accounting journals and selective working papers, intending to understand the discussion on IFRS adoption and accounting quality in literature. Findings: Review findings suggest that IFRS adoption is expected to deliver benefits in improving the consistency of financial statements, including value relevance and earnings control. According to published literature, IFRS adoption would be more effective if it is backed by good legal protections, qualified experts, as well as appropriate supervision and compliance. Moreover, empirical evidence has shown that the advantages of IFRS are not universally recognized across countries. Overall, this study suggests that accounting consistency cannot be measured solely in terms of IFRS implementation, whether optional or obligatory. Limitations: This study is solely based on the qualitative review of the prominently published literature and also limits its focus on the two primary financial reporting quality metrics which could be extended. Moreover, macro-level determinants of IFRS's impact on reporting quality could be analyzed. Practical Implications: This study adds to the current literature by including a much-needed summary overview of the significance of IFRS adoption in accounting quality metrics in a global context, which will help researchers explore the IFRS framework further. Originality: This paper presented the measures used by studies to determine accounting reporting quality, summarizes the factors that contribute to accounting quality, and contributes to improving the quality assessment of financial reporting information.
Is Bangladesh Competent Enough to Confront Future Challenges? An Empirical Analysis of Competitiveness of Bangladesh’s Apparel Sector Compared to Major Competitors
(Faculty of Business Studies, BUFT, 2020-08-01) Adnan, ATM; Tumpa, Anindita Saha; Khan, Prof. Md. Muinuddin
Purpose: This study investigates the comparative advantage of Readymade Garment (RMG) industry of Bangladesh compared to other major Asian competitors in the global market such as China, Vietnam, Cambodia, India, Sri Lanka and Turkey from 2013 to 2017. Methodology: This study applies Balassa‟s Index of Revealed Comparative Advantage (RCA) with data from World Trade Organization (WTO) database during the stated period of 2013 to 2017 to calculate the RCA index of competing economies in global clothing export. Additionally, correlation-coefficient of the clothing export of competing economies for the study period has been calculated to analyze the export pattern. Moreover, the consistency and volatility of comparative advantage measured by standard deviation and coefficient of variance of the RCA have been analyzed. Findings: All seven competing economies display some degree of comparative advantage, the strongest display of RCA score comes from Bangladesh, followed by Cambodia. The findings exhibited that Bangladesh‟s export pattern is highly undiversified to single industry compared to other Asian economies. It is also depicted that Bangladesh has been unsuccessful in grabbing the growth in global clothing export compared to Vietnam. There has been a strong negative correlation that exists between the clothing export of Bangladesh and China whereas strong correlation persists between Bangladesh and Vietnam. It has been also identified that although Bangladesh has the highest RCA among other considered economies, the volatility remains on the higher side. Limitations: This research study has only focused on five countries trade variables. Time period of analysis of the data could also be extended. Practical Implications: The outcomes of the analysis would be helpful in formulating export policies and identifying factors of competitiveness for selecting strategic business and industrial policy for future growth. Originality/Value: This paper is one of the limited attempts to perform a structured investigation of competitiveness of Bangladesh and its Major Asian Competitor on clothing (RMG) trade to international markets as very limited previous studies have been conducted in this area.