A Study on the Pharmaceutical Companies of Bangladesh

Abstract

The study aims at measuring the degree of compliance with the disclosures required by the IFRS 7 particularly by the pharmaceutical companies of Bangladesh. Secondary data from the audited financial statements of the pharmaceutical companies found that most of the companies have complied with most of the disclosures required by IFRS 7. The companies could not comply with few disclosures due to various drawbacks like legal difficulties and complexities etc. The study also found that a higher degree of compliance brings better true and fair views of the organizations and vice-versa. Higher degree of compliance results in better management control as well as managing fund crisis and other related issues in better ways. On the other hand, the study further found that non-compliance with the disclosures result in corruption by the management of the organizations. Finally the study recommends that the companies should try to improve the financial performance as well as the fairness offinancial representation to better comply with the disclosures required by !FRS 7. Further research is also recommended for ensuring the highest level of compliance with the said disclosures.