chapter v analyses of data and test of the...

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Chapter V

Analyses of data and test of the hypothesis

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In this chapter I am going to analyze and test the application of the accounting standards’

disclosure requirements in the financial statements of both countries’ banking companies

so selected i.e. Yemen banking companies and India banking companies with related

accounting standards applied.

5.1 Analyzing Yemen banking companies with International Accounting Standards

As Yemen banking companies applied International Accounting Standards here by this

study will analyze and test the application of International Accounting Standards’

disclosure requirements.

5.1.1 IAS 1 Presentation of Financial Statements’ Disclosure Requirements

Table (5) IAS 1 Presentation of Financial Statements’ Disclosure Requirements

application percentage

Detail Applied Partly

Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Information to be

Presented on the Face of

the Balance Sheet

10 0 0 0 0 10

Information to be

Presented on the Face of

the Income Statement

10 0 0 0 0 10

Presentation of Cash Flow

Statement

9 0 1 0 0 10

Presentation of Statement

of Change in Equity

9 0 1 0 0 10

Notes to the Financial

Statements

9 1 0 0 0 10

Presentation of

Accounting Policies

9 1 0 0 0 10

Other Disclosures 10 0 0 0 0 10

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5.1.1.1 Information to be Presented on the Face of the Balance Sheet

This is the first disclosure requirement which I have found all the banks i.e. 100% have

followed.

5.1.1.2 Information to be Presented on the Face of the Income Statement

Also these requirements have been followed by all banks i.e. 100% as shown in table 5

above.

5.1.1.3 Presentation of Cash Flow Statement

Here I have found only Cooperative & Agricultural Credit Bank i.e. 10% of the sample

so analyzed did not follow this requirements as they did not present cash flow statements,

but all other banks i.e. 90% have presented cash flow statements as required.

5.1.1.4 Presentation of Statement of Change in Equity

Same result as previous requirement have been noted as only Cooperative & Agricultural

Credit Bank i.e. 10% of the sample so analyzed did not follow this requirements as they

did not present statement of change in equity, but all other banks i.e. 90% have presented

statement of change in equity as required.

5.1.1.5 Notes to the Financial Statements

In these requirements I found 9 banks i.e. 90% of the sample disclosed required

information but in case of Cooperative & Agricultural Credit Bank i.e. 10% they have

partly applied this requirement as they did not disclose all the information required for

the basis of preparation of the financial statements.

5.1.1.6 Presentation of Accounting Policies

Also this requirement only Cooperative & Agricultural Credit Bank i.e. 10% of the

sample so analyzed have partly applied as they did not disclose all the accounting polices

followed by them for their accounts, but the rest 9 banks i.e. 90% have disclosed all the

information so required.

5.1.1.7 Other Disclosures

The details about this requirement have been presented in chapter 3 which I realized all

the banks i.e. 100% have followed.

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5.1.2 IAS 2 Inventories’ Disclosure Requirements

Table (6) IAS 2 Inventories’ Disclosure Requirements application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose the accounting

policies adopted in

measuring inventories

0 0 0 0 10 10

Disclose the total carrying

amount of inventories

0 0 0 0 10 10

Disclose the carrying


pledged as security for

liabilities

0 0 0 0 10 10

Other disclosure 0 0 0 0 10 10

As the explanation of this standard and its scope in chapter 3 which clear that this

standard is not applicable for banking companies which I have also noted while this

study, so this standard’s disclosure requirements not applicable by all banks i.e. 100%.

5.1.3 IAS 7 Cash Flow Statements’ Disclosure Requirements

Table (7) IAS 7 Cash Flow Statements’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Present Cash Flow

Statements

9 0 1 0 0 10

Present cash flow arising

from each operating,

investing and financing

activities separately

9 0 1 0 0 10

Cash flows arising from 9 0 1 0 0 10

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activities of a financial

institution reported on a

net basis

Disclose the method used

to report cash flows from

operating activities

9 0 1 0 0 10

Other disclosure

requirements

9 0 1 0 0 10

Table (7) indicate that 90% of banking companies under this study have comply with all

disclosure requirements of the IAS 7 Cash Flow Statements except the Cooperative &

Agriculture Credit Bank who filled in compliance with this standard which led to miss

understand of the financial position of the bank and the users will not know either the

future cash flows nor the source of the cash so flowed; hence the information furnished

by this bank will be unused for them in this manner.

5.1.4 IAS 8 Accounting Policies, Change in Accounting Estimates and Errors’

Disclosure Requirements

Table (8) IAS 8 Accounting Policies, Change in Accounting Estimates and Errors’

Disclosure Requirements application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure related to: Net

Profit or Loss for the

Period

10 0 0 0 0 10

Disclosure of

Extraordinary Items

0 0 0 0 10 10

Disclosure related to:

Changes in Accounting

Estimates

2 0 0 0 8 10


Fundamental Errors

3 0 0 0 7 10

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Changes in Accounting

Policies

0 0 0 0 10 10

5.1.4.1 Disclosure related to Net Profit or Loss

Table 8 show that all banks have follow this requirement by presenting all components of

revenue and expenses of the banks’ ordinary activities which is useful for the users of the

banking companies’ financial statements.

5.1.4.2 Disclosure of Extraordinary Items

Throughout my study I didn’t note any extraordinary items in all the banks’ financial

statements, so as there are no extraordinary items there is no information to be disclosed;

hence this disclosure requirement not applicable for all banks i.e. 100% of the sample

under this study.

5.1.4.3 Disclosure related to: Changes in Accounting Estimates

Table 4 show only two banks i.e. 20% of the sample followed these requirements which

were about change in estimating some provisions, but for the rest 8 banks i.e. 80% I

didn’t note any change in their accounting estimates which mean this requirement is not

applicable for them. For more detail about this requirement refer to chapter 3.

5.1.4.4 Disclosure related to Fundamental Errors

I found 3 banks i.e. 30% of the sample followed these requirements which were about

errors of prior period expenses related to deficiency of tax of previous years; but the rest

7 banks i.e. 70% of the sample show no information in this respect which mean that they

don’t have information to disclose, so this requirement not applicable by them.

5.1.4.5 Disclosure related to: Changes in Accounting Policies

As I didn’t note any change in accounting polices in any bank, this disclosure

requirement not applicable for all banks i.e. 100% under this study as the reason for

disclosure not existed.

5.1.5 IAS 10 Events after the Balance Sheet Date’s Disclosure Requirements

Table (9) IAS 10 Events after the Balance Sheet Date’s Disclosure Requirements



Applied

Not

Applied

No

Inform

Not

Applicable

Total

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ation

Disclosure of the Date of

Authorization for issue

Financial Statements

5 0 5 0 0 10

Disclosure of Adjusting

Events after the Balance

Sheet Date

0 0 0 0 10 10

Disclosure of the Nature

of Non-Adjusting Events

After the Balance Sheet

Date

9 0 0 1 0 10

Disclosure of Dividend 3 0 0 0 7 01

5.1.5.1 Disclosure of the Date of Authorization for issue Financial Statements

It is clear from Table 9 that 50% of banks have apply this requirement which indicate

clearance of their Balance Sheet and the users will be a wear if there any events after the

balance sheet date or not and what are their effects. But also 50% of Banks not applied

this requirement which will make the users of their financial statements loss part of

information they are seeking for and they will have uncertainty about the events so

existed after the balance sheet date.

5.1.5.2 Disclosure of Adjusting Events after the Balance Sheet Date

As we can see in the Table 9 that there were no information about this requirement in all

banks financial statements so analyzed i.e. 100% but this observation doesn’t mean that

all banks didn’t follow this requirement as those banks maybe not having events after the

balance sheet date which need to be disclosed, so this requirement not applicable for

them.

5.1.5.3 Disclosure of the Nature of Non-Adjusting Events after the Balance Sheet

Date

I have observe from the analyzing the data which it is clear in Table 9 that 90% of banks

have applied this requirement and all of them were about the tax event accrued after the

balance sheet date. In the case of Cooperative & Agriculture Credit Bank there was no

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information which present 10% of the sample so analyzed but that maybe because of non

existence of that events which require disclosure about.

5.1.5.4 Disclosure of Dividend

From Table 9 I relies that 3 banks i.e. 30% followed this requirement and for 7 banks

70% of the sample, this requirement is not applicable as some of them have had loss

which unable them to declare any dividend and the other have transferred their profit to

reserve.

5.1.6 IAS 11 Construction Contracts’ Disclosure Requirements

Table (10) IAS 11 Construction Contracts’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of contract

revenue

0 0 0 0 10 10

Disclosure for contracts in

progress

0 0 0 0 10 10


assets and liability

0 0 0 0 10 10

This standard is not applicable for banking companies as this standard has been issued for

Constructing Contracts, and this what the explanation given in point No. 3.7.1 of chapter

3 has indicated about the scope of this standard.

5.1.7 IAS 12 Income Tax’s Disclosure Requirements

Table (11) IAS 12 Income Tax’s Disclosure Requirements application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Separate disclosure of the

major components of tax

expense (income)

1 8 1 0 0 10

Separate disclosure of the 0 1 9 0 0 10

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aggregate current and

deferred tax assets and

liability

Disclose the amount of a

deferred tax asset and the

nature of the evidence

supporting its recognition

0 0 10 0 0 10

Disclose the nature of the

potential income tax result

from the payment of

dividends

0 0 10 0 0 10

5.1.7.1 Separate disclosure of the major components of tax expense (income)

As I explained in detail in chapter 3 about this standard and all its disclosure

requirements I found only The Yemen Bank for Reconstruction and Development i.e.

10% of the sample have followed this requirement, 8 banks i.e. 80% of the sample have

partly applied this requirement as they didn’t disclose all the information as required, but

only Cooperative & Agriculture Credit Bank i.e. 10% of the sample did not disclose any

requirement.

5.1.7.2 Separate disclosure of the aggregate current and deferred tax assets and

liability

In this requirement I found only The Yemen Bank for Reconstruction and Development

i.e. 10% of the sample have partly applied this requirement as they didn’t disclose

deferred tax assets because of the nature of the tax law of Yemen, and the rest 9 banks i.e.

90% of the sample didn’t follow this requirement.

5.1.7.3 Disclose the amount of a deferred tax asset and the nature of the evidence

supporting its recognition

I have observed that this requirement not applied by all banking companies in Yemen i.e.

100% because of the nature of Yemen Tax Accounting as if deferred tax assets exist,

their clearance is not usually definite in the foreseeable future. And this also indicates the

conflict of Yemen Law and International Accounting Standards in some area.

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5.1.7.4 Disclose the nature of the potential income tax result from the payment of

dividends

Here also I have observed that this requirement not applied by all banking companies in

Yemen i.e. 100% because of the nature of Yemen Tax Accounting.

5.1.8 IAS 14 Segment Report’s Disclosure Requirements

Table (12) IAS 14 Segment Report’s Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure in case of

Primary Reporting Format

0 0 0 10 0 10


Secondary Segment

Information

0 0 0 10 0 10


Through my study analyses I didn’t find any information in this respect indicating either

this standard not applicable by all the banks as they don’t have segment to disclose about

them nor they didn’t apply this standard.

5.1.9 IAS 16 Property, Plant and Equipment’s Disclosure Requirements

Table (13) IAS 16 Property, Plant and Equipment’s Disclosure Requirements

application


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of the

measurement bases

10 0 0 0 0 10

Disclosure of the

depreciation

10 0 0 0 0 10

Disclosure of any

additions, disposals,

10 0 0 0 0 10

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acquisitions and effect of

evaluation

Disclosure of restrictions

on title of property, plant

and equipment

0 0 0 0 10 10

Disclosure in the course of

construction or acquisition

5 0 0 5 0 10

Disclosure when items of

assets are stated at

revalued amounts

1 1 0 0 8 11

5.1.9.1 Disclosure of the measurement bases

From Table (13) which presented analyses of financial statements of Yemeni Banks I

have noted that all the banks i.e. 100% have follow this requirement by disclosing the

measurement bases used as all of them have used acquisition cost in recognizing their

assets.

5.1.9.2 Disclosure of the depreciation

It is clear in Table (13) that all banks i.e. 100% have present this requirements.

4.1.9.3 Disclosure of any additions, disposals, acquisitions and effect of evaluation

Also Table (13) present 100% of banks follow this requirement.

5.1.9.4 Disclosure of restrictions on title of property, plant and equipment

None of the banks i.e. 100% have had restriction on title of their property as I have

observed, hence this requirement not applicable for them.

5.1.9.5 Disclosure in the course of construction or acquisition

We can note from Table (13) above that 5 banks i.e. 50% of the banks have applied this

requirement in Regards, of recording expenditures on account of property, plant or

equipment in the course of construction and some of them in the course of acquisition.

But the rest i.e. 50% of banks found no information in respect of this requirement but this

doesn’t mean that the banks is not applying this requirement as they maybe not having

any information to be disclose in this respect.

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5.1.9.6 Disclosure when items of assets are stated at revalued amounts

From Table (13) we can see that only one bank (Watani Bank ) i.e. 10% of the sample so

analyzed has applied this requirement as they revalued their land and building and they

have made revaluation reserve for the revaluation surplus, and one bank (The Yemen

Bank For reconstruction And Development) i.e. 10% of the sample has partly applied as

they revalued their land and building but they didn’t restate the revaluation amount of the

assets so revalued in the balance sheet and they just make disclosure in the note followed

after the balance sheet and they said they have done so as the instruction and guidance of

the reserve bank of Yemen (circular no. 2 of 2002 regarding the format of the financial

statements) which said that the assets of the bank should be presented at their historical

cost. But in case of the remaining 8 banks i.e. 80% of the sample this requirement is not

applicable as this requirement should be applied only if the enterprises have revalued

their assets which non of those bank have made and this is maybe because of the

instruction and guidance of the reserve bank of Yemen which not allowed the revaluation

of the assets.

So from this point I think there is some conflict between the international accounting

standards and some rule and regulation of Yemen.

5.1.10 IAS 17 Leases’ (Leases in the Financial Statements of Lessors) Disclosure

Requirements

Table (14) IAS 17 Leases’ (Leases in the Financial Statements of Lessors) Disclosure

Requirements application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure in respect of finance

leases

0 0 0 0 10 10

Disclosure in respect of

operating leases

0 0 0 0 10 10

From Table 12 above I have observed that non of the banks i.e. 100% have present any

information in respect of this requirement which mean that this requirement is not

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applicable as they don’t have any rental assets. So as the condition of these requirements

not existed these requirements are not applicable.

5.1.11 IAS 17 Leases’ (Leases in the Financial Statements of Lessees) Disclosure

Requirements

Table (15) IAS 17 Leases’ (Leases in the Financial Statements of Lessees) Disclosure



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure in respect of finance

leases

0 0 0 0 10 00


operating leases

0 10 0 0 0 00

5.1.11.1 Disclosure in respect of finance leases

From Table 15 I haven’t found any information indicating that any bank have finance

lease and this is because in my opinion non of the bank i.e. 100% have finance lease

which make this requirement not applicable for all banks.

5.1.11.2 Disclosure in respect of operating leases

From table 15 I release no information have presented the application of these

requirements except the disclosure about the rent expenses in the income statement as

partly application of this requirement by all banks i.e. 100%, so this will make the

financial statements users in a position of uncertainty of the operating lease of the banks

and whether those leases are useful for the bank or are the rent paid is fair for the banks

or for what exactly this rent have been paid.

5.1.12 IAS 18 Revenue’s Disclosure Requirements

Table (16) IAS 18 Revenue’s Disclosure Requirements application percentage


Applied

Not

Applied

No

Informati

on

Not

Applicable

Total

Disclosure of the accounting

policies adopted for the

10 0 0 0 0 10

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recognition of revenue

Disclose the amount of each

significant category of revenue

recognized during the period

10 0 0 0 0 10

Disclose the amount of revenue

arising from exchanges of

goods or services

0 0 0 10 0 10

Table 16 makes clearance of the application of this standard requirements by all the

banks i.e. 100% as they have fulfill first and second requirements but in case of the third

requirement about the exchange of goods and services I observe no information in that

manner but this doesn’t mean the banks not followed this requirement as it maybe

because there were no events of exchange of any goods or services have been accrued

which make this requirement not applicable.

5.1.13 IAS 19 Employee Benefits’ Disclosure Requirements

Table (17) IAS 19 Employee Benefits’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of Post-

employment Benefits:

Defined Contribution

Plans

1 0 9 0 0 10

Disclosure of Post-

employment Benefits:

Defined Benefit Plans

0 0 10 0 0 10


Equity Compensation

Benefits

0 0 10 0 0 10

I have found only United Bank Ltd i.e. 10% of the sample disclosed required information

in respect of the first requirement only, but the rest 9 banks i.e. 90% of the sample did not

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apply this requirement, and in respect of other disclosure requirements all the banks i.e.

100% did not apply as they did not apply this standard.

5.1.14 IAS 20 Accounting for Government Grants and Disclosure of Government

Assistance’s Disclosure Requirements

Table (18) IAS 20 Accounting for Government Grants and Disclosure of

Government Assistance’s Disclosure Requirements application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose of the accounting

policy adopted for

government grants

0 0 0 0 10 10

Disclose of the nature and

extent of government grants

0 0 0 0 10 10

Disclosure of unfulfilled

conditions and other

contingencies

0 0 0 0 10 10

There is no information indicate any Government Grants given to any bank i.e. 100% 0f

sample so analyzed and this is maybe because of economic weaknesses of the Country,

So as this standard need existence of Government Grants which is not available this

standard is not applicable.

5.1.15 IAS 21 The Effects of Changes in Foreign Exchange Rates’ Disclosure

Requirements

Table (19) IAS 21 The Effects of Changes in Foreign Exchange Rates’ Disclosure



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of the amount of

exchange differences in the net

profit or loss

10 0 0 0 0 10

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Disclosure of net exchange

differences classified as equity

1 0 0 0 9 10

Disclosure of amount adjusted

in fixed assets

0 0

0 0 10 10

Disclosure if the reporting

currency is different

0 0 0 0 10 11

Disclosure of change in

classification of foreign

operation

0 0 0 0 10 10

Disclose of the method

selected to translate goodwill

0 0 0 0 10 10

Disclosure of foreign currency

risk management policy

10 0 0 0 0 10

5.1.15.1 Disclosure of the amount of exchange differences in the net profit or loss for

the period

From the analyses of financial statements of the banks I have noted that all banks i.e.

100% of the sample have adopted this standard in dealing with foreign currency and have

presented the disclosure requirement in this respect.

5.1.15.2 Disclosure of net exchange differences classified as equity

This requirement has condition of the existence of investment in foreign entity which I

have noted only in the financial statements of The Yemen Bank For Reconstruction And

Development i.e. 10% of sample as they have foreign investment and they make the

disclosure about it, but the rest of banks i.e. 90% don’t have this condition and so not

applicable for them, which is indicated in Table 19.

5.1.15.3 Disclosure of amount adjusted in fixed assets

From Table 19 it is clear that this requirement is not applicable to all the banks i.e. 100%

as none of the bank has any information of applying this treatment in their financial

statements.

5.1.15.4 Disclosure if the reporting currency is different

All the banks i.e. 100% have deal by the currency of their domiciled country (Yemen) so

this requirement also not applicable, see s Table 19.

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5.1.15.5 Disclosure of change in classification of foreign operation

Also in this respect no information have been found that the banks i.e. 100% have any

change in the classification of a significant foreign operation by which this requirement

will need to be applied.

5.1.15.6 Disclose the method selected to translate goodwill

At the last from the financial statements analyzed all the banks i.e. 100% don’t have

acquired any foreign entity, so the last requirement also not applicable which has been

presented in Table 19 above.

5.1.15.7 Disclosure of foreign currency risk management policy

I have noted all the banks i.e. 100% followed this requirement.

5.1.16 IAS 22 Business Combination’s Disclosure Requirements

Table (20) IAS 22 Business Combination’s Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure for all business

combinations

0 0 0 0 10 10

Disclosure For a business

combination which is an

acquisition

0 0 0 0 10 10

Disclosure For goodwill 0 0 0 0 10 10

Disclosure For negative

goodwill

0 0 0 0 10 11

Disclosure of the aggregate

carrying amount of

Provisions

0 0 0 0 10 10

For a business combination

which is a uniting of interests

0 0 0 0 10 10

Disclosure For business

combinations effected after

0 0 0 0 10 10

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the balance sheet date

Thru my study analysis I observe no information indicate any business combinations by

any bank under this study which need to be disclosed, hence this standard not applicable

by all the banks i.e. 100% see Table 20 above.

5.1.17 IAS 23 Borrowing Costs’ Disclosure Requirements

Table (21) IAS 23 Borrowing Costs’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of the accounting

policy

10 0 0 0 0 10

Disclosure of the amount of

borrowing costs capitalized

0 0 0 0 10 10

Disclosure of the

capitalization rate used

0 0 0 0 10 10

5.1.17.1 Disclosure of the accounting policy

From Table 21 I have found all the banks i.e. 100% recognized borrowing cost as an

expenses in the period in which they incurred, which mean that all the bank have follow

this standard and their requirements which will be in the favors of the financial

statements users.

5.1.17.2 Disclosure of the amount of borrowing costs capitalized

I have released no information of any borrowing cost capitalized in all banks i.e. 100%

which mean that they don’t have borrowing cost that are directly attributable to the

acquisition of any assets, which in turn make this requirement not applicable.

5.1.17.3 Disclosure of the capitalization rate used

Also this requirement not applicable for all banks i.e. 100% as there is no information

indicating any borrowing cost has been capitalized.

5.1.18 IAS 24 Related Party Disclosure’s (Disclosure Requirements)

189

Table (22) IAS 24 Related Party Disclosure’s (Disclosure Requirements) application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of related party

relationships where control

exists

7 2 0 0 1 10

Disclosure of the nature and

types of transactions of the

related party relationships

7 2 0 0 1 10

Disclose Items of a similar

nature

9 0 0 0 1 10

5.1.18.1 Disclosure of related party relationships where control exists

From Table 22 it is clear that my analyzed found 7 banks i.e. 70% disclosed information

as required by this standard as they disclosed who are the related party who has influence

in the operation of the banks, but in respect of United Bank Limited and Watani Bank i.e.

20% of the sample they have partly applied this requirement as they disclosed that they

have related party relationship but they don’t state whom are those related which won’t

clear many information needed by the users of their financial statements. And in respect

of Cooperative & Agriculture Credit Bank i.e. 10% of the sample of this study, this

standard is not applicable as this bank is government entity which is excluding of the

application of this standard. So they didn’t make any disclosure in this respect.

5.1.18.2 Disclosure of the nature and types of transactions of the related party

From the analyses of this study which presented in Table 22 7 banks i.e. 70% of the

sample have presented the required information of this standard which will be useful for

the users, in respect of United Bank Limited and Watani Bank i.e. 20% of the sample

they have partly applied this requirement as they didn’t disclose the nature and type of

transaction of the related party which make their financial statements insufficient for the

users of their financial statements, And in respect of Cooperative & Agriculture Credit

Bank i.e. 10% of the sample of this study, this standard is not applicable as this bank is

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government entity which is excluding of the application of this standard. So they didn’t

make any disclosure in this respect.

5.1.18.3 Disclose Items of a similar nature

In respect of this requirement 9 banks i.e. 90% of the sample so analyzed present this

requirement in their financial statements as they disclosed aggregate items of similar

nature, and 10% of the sample not present any information in this respect as it is not

applied by government entity (Cooperative & Agriculture Credit Bank).

5.1.19 IAS 26 Accounting and Reporting by Retirement Benefit Plans’ Disclosure

Requirements

Table (23) IAS 26 Accounting and Reporting by Retirement Benefit Plans’



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose a statement of

changes in net assets

available for benefits

0 0 0 0 10 10

Disclose a summary of

significant accounting

policies

0 0 0 0 10 10

Disclose a description of

the plan and the effect of

any changes in the plan

0 0 0 0 10 10

As all the companies in Yemen are dealing with government social security

arrangements, this standard not applicable for all banks i.e. 100% of the sample so

analyzed as they don’t make any disclosure about this requirements, see Table 23 above.

5.1.20 IAS 27 Consolidated Financial Statements and Accounting for Investments in

Subsidiaries’ Disclosure Requirements

Table (24) IAS 27 Consolidated Financial Statements and Accounting for

Investments in Subsidiaries’ Disclosure Requirements application percentage

Detail Applied Partly Not No Not Total

191

Applied Applied Inform

ation

Applicable

Disclose the reasons for not

consolidating a subsidiary

0 0 0 0 10 10

Disclosure in respect of not

using uniform accounting

policies

0 0 0 0 10 10

Disclose a list of all

subsidiaries

1 0 0 0 9 10

Other disclosure where

applicable

1 0 0 0 9 11

Disclosure in the parent's

separate financial statements

1 0 0 0 9 10

5.1.20.1 Disclose the reasons for not consolidating a subsidiary

This requirement should apply only if a parent company itself is subsidiary of other

company which is not existed in the financial statements of all banks i.e. 100% hence this

requirement is not applicable.

5.1.20.2 Disclosure in respect of not using uniform accounting policies

I observe that all the banks who have subsidiaries companies have used uniform

accounting policies and other banks who don’t have subsidiaries need not apply this

requirement, so this requirement also not applicable for all banks under this study i.e.

100% see Table 24.

5.1.20.3 Disclose a list of all subsidiaries

Only The Yemen Bank for Reconstruction and Development i.e. 10% has subsidiaries

and has made required disclosure of this standard, but the rest of banks i.e. 90% don’t

have any information in this respect, hence this requirement not applicable as I have

noted in the analysis I have done.

5.1.20.4 Other disclosure where applicable

This requirement should be applied where applicable which suite The Yemen Bank for

Reconstruction And Development i.e. 10% only and they have followed it, and for 90%

of the banks not applicable as they have nothing to disclose about it.

192

5.1.20.5 Disclosure in the parent’s separate financial statements

Also this requirement as previous requirements have been followed by 10% of the sample

(The Yemen Bank for Reconstruction and Development), and not applicable by 90% of

the sample so analyzed, see Table 24.

5.1.21 IAS 28 Accounting for Investments in Associates’ Disclosure Requirements

Table (25) IAS 28 Accounting for Investments in Associates’ Disclosure



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of an

appropriate listing of

significant associates

4 1 0 0 5 10

Disclose the methods used

to account for such

investments.

5 0 0 0 5 10


Investments in associates

accounted for using the

equity method

3 0 0 0 7 10

5.1.21.1 Disclosure of an appropriate listing of significant associates

It is clear in Table 25 that from my analyzed data that 4 banks i.e. 40% disclosed required

information of their investments in association, but one bank i.e. 10% (Cooperative &

Agriculture Credit Bank) has partly applied this requirement as they disclosed listing of

their investments but they didn’t disclose proportion of ownership interest of their

investments as required by this standard, and 5 banks i.e. 50% have no information in

respect of any investments in other company whether associated or subsidiary, so this

requirement is not applicable for them.

5.1.21.2 Disclose the methods used to account for such investments.

The explained information in chapter 3 about this standard and its disclosure

requirements clear what methods should be used to account for such investments. Table

193

25 presented the result of analyzed financial statements of the banks in which I found 5

banks i.e. 50% of the sample followed this requirement as they have investments, but the

remaining banks i.e. 50% do not have information to be disclosed in respect of this

requirement which mean it is not applicable for them.

5.1.21.3 Disclosure in respect of Investments in associates accounted for using the

equity method

This requirement need the existence of the condition of this standard (using equity

method for accounted investments in associates) to be required which I found only 3

banks i.e. 30% have it and they disclosed required information but 7 banks i.e. 70% either

have no investment at all or not used equity method to account their investments in

associates which make this requirement not applicable by them.

5.1.22 IAS 29 Financial Reporting in Hyperinflationary Economies’ Disclosure

Requirements

Table (26) IAS 29 Financial Reporting in Hyperinflationary Economies’ Disclosure



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose the fact that the

financial statements

restated for the changes in

the general purchasing

power

0 0 0 0 10 10

Disclosure about the

approach based for


0 0 0 0 10 10

Disclose the identity and

level of the price index

0 0 0 0 10 10

Even Yemen suffering from economic weaknesses recently but still not Hyperinflationary

Economies, and I didn’t find any information reflecting the application of this standard as

194

all the banks i.e. 100% have prepared their financial statements in historical cost see

Table 26 which make this standard not applicable by all the banks.

5.1.23 IAS 30 Disclosures in the Financial Statements of Banks and Similar

Financial Institutions’ Disclosure Requirements

Table (27) IAS 30 Disclosures in the Financial Statements of Banks and Similar

Financial Institutions’ Disclosure Requirements application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose Accounting Policies 10 0 0 0 0 10

Disclosure in the Income

Statement

10 0 0 0 0 10

Disclosure in the Balance

Sheet

10 0 0 0 0 10


Contingencies and

Commitments Including Off

Balance Sheet Items

10 0 0 0 0 11

Disclose Maturities of Assets

and Liabilities

9 0 1 0 0 10

Disclosure of Concentrations

of Assets, Liabilities and Off

Balance Sheet Items

9 0 1 0 0 10

Disclosure of Losses on

Loans and Advances

8 2 0 0 0 10

Disclose General Banking

Risks

10 0 0 0 0 10

Disclosure of Assets Pledged

as Security

4 0 0 0 6 10

Disclosure of Related Party

Transactions

10 0 0 0 0 10

195

5.1.23.1 Disclose Accounting Policies

I observe that all banks i.e. 100% have disclosed required information.

5.1.23.2 Disclosure in the Income Statement

This requirement also has been disclosed by all banks i.e. 100%.

5.1.23.3 Disclosure in the Balance Sheet

Table 27 clear that all banks i.e. 100% have followed this requirement.

5.1.23.4 Disclosure in respect of Contingencies and Commitments Including Off

Balance Sheet Items

All banks i.e. 100% of the sample disclosed information which they have and needed to

be disclosed.

5.1.23.5 Disclose Maturities of Assets and Liabilities

Only Cooperative & Agriculture Credit Bank i.e. 10% of the sample did not follow this

requirement, and 90% of the banks presented required information.

5.1.23.6 Disclosure of Concentrations of Assets, Liabilities and Off Balance Sheet

Items

Same result of previous point as only Cooperative & Agriculture Credit Bank i.e. 10% of

the sample did not follow this requirement, and 90% of the banks presented required

information.

5.1.23.7 Disclosure of Losses on Loans and Advances

Eight banks i.e. 80% of the sample disclosed required information but 2 banks i.e. 20% of

the sample have partly applied this requirements as Cooperative & Agriculture Credit

Bank did not disclosed accounting policies in respect of recognition of losses on loans

and advances, and Watani Bank did not make provision for Non Performing Loans and

Advances as required by this standard.

5.1.23.8 Disclose General Banking Risks

All banks i.e. 100% have disclosed about it see Table 27 above.

5.1.23.9 Disclosure of Assets Pledged as Security

Banks who have assets pledged as security disclosed this fact which presents 40% of the

sample, but other banks i.e. 60% didn’t disclose about it as this requirement is not

applicable for them as they did not have it.

196

5.1.23.10 Disclosure of Related Party Transactions

These last requirements of this standard which all banks i.e. 100% followed it, see Table

27.

5.1.24 IAS 31 Financial Reporting of Interests in Joint Ventures’ Disclosure

Requirements

Table (28) IAS 31 Financial Reporting of Interests in Joint Ventures’ Disclosure



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of contingent

Liabilities

0 0 0 0 10 10

Disclosure of commitments

in respect of its interests in

joint ventures

0 0 0 0 10 10

Disclose a listing and

description of interests in

significant joint ventures

0 0 0 0 10 10

I have observed that all banks i.e. 100% don’t have any information about all the

requirements of this standard as they didn’t applied it because this standard itself not

applicable for them as non of them have any investments in joint ventures.

5.1.25 IAS 32 Financial Instruments: Disclosure and Presentation’s Disclosure

Requirements

Table (29) IAS 32 Financial Instruments: Disclosure and Presentation’s Disclosure



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of Risk

Management Policies

9 0 1 0 0 10

Disclosure of Terms, 9 1 0 0 0 10

197

Conditions and Accounting

Policies

Disclosure of Interest Rate

Risk

9 0 1 0 0 10

Disclosure of Credit Risk 9 0 1 0 0 11

Disclose Fair Value 9 0 1 0 0 10

Disclosure of Financial

Assets Carried at an Amount

in Excess of Fair Value

0 0 0 1 9 10

5.1.25.1 Disclosure of Risk Management Policies

I observe that 9 banks i.e. 90% of the sample followed this requirement, but Cooperative

& Agriculture Credit Bank i.e. 10% of the sample didn’t disclose any information in this

respect.

5.1.25.2 Disclosure of Terms, Conditions and Accounting Policies

From Table 29 we can see that only Cooperative & Agriculture Credit Bank i.e. 10%

have partly applied this requirement as they disclosed Terms, Conditions and Accounting

Policies of some financial instruments only and omitted other, but 9 banks i.e. 90% have

presented required disclosure.

5.1.25.3 Disclosure of Interest Rate Risk

From Table 29 it seem that same result of first requirement came out as 9 banks i.e. 90%

make required disclosure and only Cooperative & Agriculture Credit Bank i.e. 10%

didn’t.

5.1.25.4 Disclosure of Credit Risk

Also 9 banks i.e. 90% makes disclosure in respect of Credit Risk as required and only

Cooperative & Agriculture Credit Bank did not apply this requirement.

5.1.25.5 Disclose Fair Value

I have noted that 9 banks i.e. 90% have followed this requirement also as they disclosed

that the fair value of their financial instruments do not differ fundamentally from their

book value at the balance sheet but Cooperative & Agriculture Credit Bank i.e. 10% did

not present any information in this meaner.

198

5.1.25.6 Disclosure of Financial Assets Carried at an Amount in Excess of Fair

Value

This is last disclosure requirement of this standard which should be apply if the Financial

Assets Carried at an Amount in Excess of Fair Value only otherwise it is not applicable,

so I observe that this requirement is not applicable for 9 banks i.e. 90% as their financial

assets not carried at an amount in excess of fair value, but in respect of Cooperative &

Agriculture Credit Bank i.e. 10% I didn’t find any information indicating any thing.

5.1.26 IAS 33 Earnings Per Share’s Disclosure Requirements

Table (30) IAS 33 Earnings Per Share’s Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose basic and diluted

earning per share

2 0 0 0 8 10

Disclose the numerators 2 0 0 0 8 10

Disclose the denominator 2 0 0 0 8 10

As I explained in chapter 3 about the scope of this standard all Yemeni Banks came under

the enterprise whose not required to follow this standard as their share is not traded which

mean that this standard is not applicable for 8 banks i.e. 80% as they did not trade their

share in the market by the public, but if they disclose their earning per share they should

follow this standard which only 2 banks (The Yemen Bank For Reconstruction and

Development & The Bank of Yemen and Kuwait) i.e. 20% follows and present required

disclosure which we can noted from Table 30 above.

5.1.27 IAS 34 Interim Financial Reporting’s Disclosure Requirements

Table (31) IAS 34 Interim Financial Reporting’s Disclosure Requirements



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose significant 0 0 0 10 0 10

199

change in an estimated

amount reported in an

interim period

5.1.27.1 Disclose significant change in an estimated amount reported in an interim

period

From Table 31 it is clear that non of the banks i.e. 100% of the sample under this study

have presented any information indicating the application of this standard.

5.1.28 IAS 35 Discontinuing Operations’ Disclosure Requirements

Table (32) IAS 35 Discontinuing Operations’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Initial Disclosure 0 0 0 0 10 10


Updating the Disclosures 0 0 0 0 10 10

Separate Disclosure for

Each Discontinuing

Operation

0 0 0 0 10 10

All requirements of this standard which stated above not applicable for all banks i.e.

100% as I did not note any information indicating discontinuing operation in the whole

financial statements of the banks so analyzed. Hence this standard is not applicable for

them as the main reasons for this standard to be applicable do not existed, Table 32

presented this result.

5.1.29 IAS 36 Impairment of Assets’ Disclosure Requirements

Table (33) IAS 36 Impairment of Assets’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose the amount of 0 0 2 0 8 10

200

impairment losses

recognized in the income

statement

Disclose the amount of

impairment losses

recognized directly in equity

0 0 2 0 8 10

Disclosure in respect of An

enterprise that applies IAS

14, Segment reporting

0 0 0 0 10 10

Disclosure If an impairment

loss for an individual asset or

a cash-generating unit is

material to the financial

statements

0 0 2 0 8 10

Disclosure If an impairment

loss are material in aggregate

to the financial statements

0 0 2 0 8 10

5.1.29.1 Disclose Impairment of Assets in the income statements

For 8 banks i.e. 80% of this study sample this requirement is not applicable as they have

disclose in the note of financial statements that they are reviewed for impairment

whenever events or circumstances indicate that the carrying amount may not be

recoverable, and how they recognize impairment losses if any in the income statement

which is required by this standard. So as they didn’t disclose neither impairment losses

nor reversals of impairment losses recognized in the income statement at the same time

they disclose that they followed this standard, this requirement not applicable for them.

But 2 banks i.e. 20% of the sample did not apply this requirement as The Yemen Bank

For Reconstruction & Development disclose that expected future cash flows are not

discounted to their present value in determining the recoverable amount of items of

property and equipment which mean that they didn’t follow this standard at all i.e. they

didn’t apply this standard, but in respect of Cooperative & Agriculture Credit Bank they

201

didn’t disclose any information about this standard which mean that they didn’t apply this

standard see Table 33.

5.1.29.2 Disclose Impairment of Assets recognized directly in equity

This requirement not applicable for 8 banks i.e. 80% as I have explained in previous

point that they recognize impairment losses in income statement not directly in equity,

and 2 banks i.e. 20% of the sample (The Yemen Bank For Reconstruction &

Development - Cooperative & Agriculture Credit Bank) did not apply this requirement.

5.1.29.3 Disclosure in respect of An enterprise that applies IAS 14 Segment

Reporting

I have already stated in analyzing disclosure requirements of Segment Reporting

previously as I noted none of the banks applying that standard which in turn means this

requirement is not applicable for all banks i.e. 100%.

5.1.29.4 Disclose If an impairment loss for an individual asset or a cash-generating

unit is material to the financial statements

As I have explained before for 8 banks i.e. 80% this requirement is not applicable as the

information of those banks indicated the application of this standard if they have

impairment losses at the same time I observed that they don’t have information to be

disclosed in respect of this standard. So as they don’t have it we can’t release if

impairment losses are material for individual assets or a cash generating unit which in

turn mean that this requirement not applicable for them, and in respect of (Cooperative &

Agriculture Credit Bank - The Yemen Bank For Reconstruction & Development) i.e.

20% of sample I have already explained that they didn’t apply this standard see Table 33.

5.1.29.5 Disclosure If an impairment loss are material in aggregate to the financial

statements

Same result of previous requirement 2 banks i.e. 20% did not apply this standard and 8

banks i.e. 80% this requirement not applicable for them.

5.1.30 IAS 37 Provisions, Contingent Liabilities and Contingent Assets’ Disclosure

Requirements

Table (34) IAS 37 Provisions, Contingent Liabilities and Contingent Assets’



202


ation

Applicable


amount of provision

10 0 0 0 0 10

Disclosure about the

provision

10 0 0 0 0 10

Disclose a brief

description of the

contingent liability and

contingent Assets

10 0 0 0 0 10

5.1.30.1 Disclosure in respect of amount of provision

Even with the exception to international accounting standards in compliance with local

laws and regulations issued by the Central Bank of Yemen as all the banks i.e. 100%

have adopted minimum fixed percentages for loan, but at the same time they disclosed

required information in respect of this standard. And only the Watani Bank have made

required information even they didn’t make enough provision neither as required by this

standard nor laws and regulations issued by the Central Bank of Yemen.

5.1.30.2 Disclosure about the provision

All the banks i.e. 100% have followed this requirement as stated by this standard.

5.1.30.3 Disclose a brief description of the contingent liability and contingent Assets

Also this requirement has been followed by all banks i.e. 100% see Table 34 above.

5.1.31 IAS 38 Intangible Assets’ Disclosure Requirements

Table (35) IAS 38 Intangible Assets’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

General Disclosure of

intangible assets

4 2 0 4 0 10


specific case of intangible

0 0 0 0 10 10

203

assets

Disclosure for intangible

assets acquired by way of

a government grant

0 0 0 0 10 10

Disclosure for intangible

assets carried at revalued

amounts

0 0 0 0 10 10

Disclosure of Research

and Development

Expenditure

7 0 0 3 0 10

5.1.31.1 General Disclosure of intangible assets

From Table 35 it is clear that 4 banks i.e. 40% have applied this requirement as they

disclosed the information required which they have and 2 banks i.e. 20% they have partly

applied this requirement as the have disclose the way of treating intangible assets if they

have it but they didn’t disclose separately the amount of that assets or the amortization of

that amount, but in respect of 4 banks i.e. 40% I didn’t find any information relating this

requirement but this doesn’t mean that they don’t followed this standard as they may

don’t have intangible assets at all which require disclosure.

5.1.31.2 Disclosure in respect of specific case of intangible assets

I have already explain above that this requirement not applicable for all banks i.e.100%

as non of the banks under this study have intangible assets amortized over 20 years or

restricted intangible assets which in turn means that this requirement not applicable.

5.1.31.3 Disclosure for intangible assets acquired by way of a government grant

This study have approved that none of the banks under this study have had government

grant which mean not applicability of this requirement for all banks i.e. 100%.

5.1.31.4 Disclosure for intangible assets carried at revalued amounts

All the banks did not revaluate their assets, so in absent of the assets revaluation this

requirement not applicable for all the banks i.e. 100%.

5.1.31.5 Disclosure of Research and Development Expenditure

Table 35 show 7 banks i.e. 70% have disclosed required information by this standard as

they disclosed the amount of expenditure for advertisement, training and computer

204

system in the income statements as required, but there were no information disclosed by

3 banks i.e. 30% which mean either those banks don’t have information to be disclosed in

respect of this requirement or they didn’t follow this requirement.

5.1.32 IAS 39 Financial Instruments: Recognition and Measurements’ Disclosure

Requirements

Table (36) IAS 39 Financial Instruments: Recognition and Measurements’



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose same disclosure

requirements of IAS 32

9 0 1 0 0 10

Disclosure of Accounting

Policies

9 1 0 0 0 10

Disclosure relating to

hedging

0 0 0 10 0 10

Additional disclosure

relating to financial

instruments

8 2 0 0 0 10

5.1.32.1 Disclose same disclosure requirements of IAS 32

In respect of this requirement 9 banks i.e. 90% followed it, but Cooperative &

Agriculture Credit Bank i.e. 10% didn’t.

5.1.32.2 Disclosure of Accounting Policies

Table 36 show only 1 bank (Cooperative & Agriculture Credit Bank) i.e. 10% has partly

follow this requirement as the bank disclosed accounting policies in respect of some of

their financial instruments only but the rest of banks i.e. 90% have disclosed the required

information to the extent which they have.

5.1.32.3 Disclosure relating to hedging

I have not found clear information in respect to this requirement by all the banks i.e.

100% except for the exchange rate of foreign currency effect.

205

5.1.32.4 Additional disclosure relating to financial instruments

As we can see above most of the requirements have to be disclosed only if it accrued

which 8 banks i.e. 80% of the sample have disclose to the extent they have even they

disclosed that their financial instruments fair value didn’t differ fundamentally from their

book value, and 2 banks i.e. 20% of the sample have partly followed this requirement as

Cooperative & Agriculture Credit Bank disclosed that they did not follow this standard in

respect of revaluation of their financial investments, and The Yemen Bank for

Reconstruction & Development disclosed that they did not recognize the difference

between the fair value and book value of their non trading investments as these

investments not traded in a recognized stock exchange in compliance with regulation and

guidance of The Central Bank of Yemen.

5.1.33 IAS 40 Investment Property’ Disclosure Requirements

Table (37) IAS 40 Investment Property’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose General

Description of investment

property

0 0 0 0 10 10


Fair Value Model

0 0 0 0 10 10


Cost Model

0 0 0 0 10 10

Through my analysis I did not find any information in all banks so analyzed i.e. 100%

indicating that banks having investments property as their property which they have are

in use by them for their occupation, hence this standard is not applicable for all the banks

under this study.

5.1.34 IAS 41 Agriculture’ Disclosure Requirements

Table (38) IAS 41 Agriculture’ Disclosure Requirements application percentage


206


ation

Applicable

General disclosure 0 0 0 0 10 10

Disclosure of changes in

the carrying amount of

Biological assets

0 0 0 0 10 10

Additional Disclosures for

Biological Assets Where

Fair Value Cannot Be

Measured Reliably

0 0 0 0 10 10

Disclosure of Government

Grants

0 0 0 0 10 10

It is clear from the explanation in chapter 3 about this standard and its disclosure

requirements that this standard is not applicable by the banking companies i.e. 100% as

they are not dealing with the scope of this standard i.e. (Agricultural Activity) but I have

explained in detail the objectives, scope and disclosure requirements of this standard to

give better idea about this standard and why this standard is not applicable for banking

companies.

5.1.35 Summarized of all disclosure requirements application result for each IAS

Table (39) Summarized of all disclosure requirements application result for each

IAS


Applie

d

Not

Applied

No

Informat

ion

Not

Applicable

IAS

1

Presentation of Financial

Statements

94% 3% 3% 0 0

IAS

2

Inventories 0 0 0 0 100%

IAS

7

Cash Flow Statements 90% 0 10% 0 0

IAS Accounting Policies, 30% 0 0 0 70%

207

8 Changes in Accounting

Estimates and Errors

IAS

10

Events After the Balance

Sheet Date

42.5% 0 12.5% 2.5% 42.5%

IAS

11

Construction Contracts 0 0 0 0 100%

IAS

12

Income Taxes 2.5% 22.5% 75% 0 0

IAS

14

Segment Reporting 0 0 0 100% 0

IAS

16

Property, Plant and

Equipment

60% 1.7% 0 8.3% 30%

IAS

17

Leases 0 25% 0 0 75%

IAS

18

Revenue 66.7% 0 0 33.3% 0

IAS

19

Employee Benefits 3.3% 0 96.7% 0 0

IAS

20

Accounting for

Government Grants and

Disclosure of

Government Assistance

0 0 0 0 100%

IAS

21

The Effects of Changes

in Foreign Exchange

Rates

30% 0 0 0 70%

IAS

22

Business Combination 0 0 0 0 100%

IAS

23

Borrowing Costs 33.3% 0 0 0 66.7%

IAS Related Party Disclosures 76.7% 13.3% 0 0 10%

208

24

IAS

26

Accounting and

Reporting by Retirement

Benefit Plans

0 0 0 0 100%

IAS

27

Consolidated and

Separate Financial

Statements

6% 0 0 0 94%

IAS

28

Investments in

Associates

40% 3.3% 0 0 56.7%

IAS

29

Financial Reporting in

Hyper-inflationary

Economies

0 0 0 0 100%

IAS

30

Disclosure in Financial

Statements of Banks and

Similar Financial

Institutions

90% 2% 2% 0 6%

IAS

31

Interests in Joint

Ventures

0 0 0 0 100%

IAS

32

Financial Instruments:

Disclosure and

Presentation

75% 1.7% 6.6% 1.7% 15%

IAS

33

Earnings Per Share 20% 0 0 0 80%

IAS

34

Interim Financial

Reporting

0 0 0 100% 0

IAS

35

Discontinuing Operations 0 0 0 0 100%

IAS

36

Impairment of Assets 0 0 16% 0 84%

IAS Provisions, Contingent 100% 0 0 0 0

209

37 Liabilities and

Contingent Assets

IAS

38

Intangible Assets 22% 4% 0 14% 60%

IAS

39

Financial Instruments:

Recognition and

Measurement

65% 7.5% 2.5% 25% 0

IAS

40

Investment Property 0 0 0 0 100%

IAS

41

Agriculture 0 0 0 0 100%

Total percentage 28.7% 2.54% 6.8% 8.63% 53.33%

Total percentage with

ignoring disclosure

requirements not

applicable

61.5% 5.45% 14.56% 18.49% ignored

5.1.35.1 IAS’ Disclosure requirements Applied

From Table 39 above which show the application of each IAS’ disclosure requirements

by Yemen banking companies it is clear that some IAS are applicable by Yemen banking

companies as they are i.e. without any adjustments to them which indicated by the

percentage of 28.7%. But this percentage increased to 61.5% if we ignored the percentage

of not applicable requirements in Yemen which it has been given throughout of this

study. See also chart No. 3.

5.1.35.2 IAS’ Disclosure requirements partly applied

Partly application of IAS means that the banking companies applied part of the

accounting standards requirements and ignore the other which indicate the weaknesses of

the accounting practices and absent of the emphases in application of accounting

standards by Yemeni Law, the percentage was 2.54% but it has increased to 5.45% when

we ignored not applicable standards. See also chart No. 4.

210

5.1.35.3 IAS’ Disclosure requirements Not applied

The requirements of IAS which not applied by banking companies indicated by Table 39

was 6.8% which increased to 14.56% when ignored not applicable requirements indicate

the requirements which can be applied by banking companies but the banking companies

not applied. This indicate the freedom of accounting practices in Yemen due to the absent

and weaknesses of professional accounting authority and Yemen law in the field of

accounting. See also chart No. 5.

5.1.35.4 No information of IAS’ Disclosure requirements

No information about IAS that means throughout of this study I didn’t find any

information indicated the application or not application etc. of some requirements of IAS

which is 8.63% and increased to 18.49% with the ignorance of not applicable

requirements and according to me this indicate the weaknesses of accounting education in

Yemen especially in international accounting standards which led to misunderstand of

IAS’ requirements and how should be treated. See also chart No. 6.

5.1.35.5 IAS’ Disclosure requirements not applicable

The highest percentage of this study was 53.33% indicating not applicability of IAS in

Yemen but this result can be divided to two part as I have realized that some

requirements are applicable in Yemen but not applicable by banking companies for many

reasons, the other part indicate the inapplicability of some IAS’ requirements in Yemen

which also indicate the conflict between IAS and Yemen environment which can be solve

only by establishing authority for issuing accounting standards for Yemen in the view of

IAS. See also chart No. 7.

211

Percentage of IAS application by Yemen Banking Companies

94%

0

90%

30%

42.50%

02.50%

0

60%

0

66.70%

3.30%0

30%

0

33.30%

76.70%

06%

40%

0

90%

0

75%

20%

0 0 0

100%

22%

65%

0 03%

0 0 0 0 0

22.50%

0 1.70%

25%

0 0 0 0 0 0

13.30%

0 03.30%

0 2% 0 1.70%0 0 0 0 04%

7.50%

0 00 0 0 02.50%

0 0

100%

8.30%

0

33.30%

0 0 0 0 0 0 0 0 0 0 0 0 1.70%0

100%

0 0 0

14%

25%

0 00%5%

10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%85%90%95%

100%

IAS 1

Pre

sent

ation

of F

inan

cial

Sta

tem

ents

IAS 2

Inve

ntor

ies

IAS 7

Cas

h Flo

w S

tate

men

ts

IAS 8

Acc

ount

ing

Policies,

Cha

nges

in A

ccou

ntin

g Estim

ates

and

Error

s

IAS 1

0 Eve

nts Afte

r the

Bal

ance

She

et D

ate

IAS 1

1 Con

stru

ction

Con

tracts

IAS 1

2 In

com

e Tax

es

IAS 1

4 Seg

men

t Rep

ortin

g

IAS 1

6 Pro

perty

, Plant

and

Equ

ipm

ent

IAS 1

7 Le

ases

IAS 1

8 Rev

enue

IAS 1

9 Em

ploy

ee B

enef

its

IAS 2

0 Acc

ount

ing

for G

over

nmen

t Gra

nts

and

Disclos

ure

of G

over

nmen

t Ass

ista

nce

IAS 2

1 The

Effe

cts of

Cha

nges

in F

oreign

Exc

hang

e Rat

es

IAS 2

2 Bus

ines

s Com

bina

tion

IAS 2

3 Bor

rowin

g Cos

ts

IAS 2

4 Relat

ed P

arty D

isclos

ures

IAS 2

6 Acc

ount

ing

and

Rep

ortin

g by

Ret

irem

ent B

enef

it Plans

IAS 2

7 Con

solid

ated

and

Sep

arat

e Fin

ancial S

tate

men

ts

IAS 2

8 In

vest

men

ts in

Ass

ociate

s

IAS 2

9 Fin

ancial

Rep

ortin

g in H

yper

-infla

tiona

ry E

cono

mies

IAS 3

0 Disclos

ure

in F

inan

cial

Sta

tem

ents o

f Ban

ks a

nd S

imila

r Fin

ancial In

stitu

tions

IAS 3

1 In

tere

sts

in J

oint

Ven

ture

s

IAS 3

2 Fin

ancial

Instru

men

ts: D

isclos

ure

and

Pre

sent

atio

n

IAS 3

3 Ear

ning

s Per

Sha

re

IAS 3

4 In

terim

Fin

ancial R

epor

ting

IAS 3

5 Disco

ntin

uing

Ope

ratio

ns

IAS 3

6 Im

pairm

ent o

f Ass

ets

IAS 3

7 Pro

vision

s, C

ontin

gent

Liabi

lities an

d Con

tinge

nt A

sset

s

IAS 3

8 In

tang

ible A

sset

s

IAS 3

9 Fin

ancial

Instru

men

ts: R

ecog

nitio

n an

d M

easu

rem

ent

IAS 4

0 In

vest

men

t Pro

perty

IAS 4

1 Agr

icultu

re

Applied

Partly Applied

Not Applied

No Information

Not Applicable

Chart No. (2)

212

Percentage of Applied IAS' Disclosure requirements by Yemen Banking Companies

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

IAS 1

Pre

sent

ation

of F

inan

cial

Sta

tem

ents

IAS 2

Inve

ntor

ies

IAS 7

Cas

h Flo

w S

tate

men

ts

IAS 8

Acc

ount

ing

Policies,

Cha

nges

in A

ccou

ntin

g Estim

ates

and

Error

s

IAS 1

0 Eve

nts Afte

r the

Bal

ance

She

et D

ate

IAS 1

1 Con

stru

ction

Con

tracts

IAS 1

2 In

com

e Tax

es

IAS 1

4 Seg

men

t Rep

ortin

g

IAS 1

6 Pro

perty

, Plant

and

Equ

ipm

ent

IAS 1

7 Le

ases

IAS 1

8 Rev

enue

IAS 1

9 Em

ploy

ee B

enef

its

IAS 2

0 Acc

ount

ing

for G

over

nmen

t Gra

nts

and

Disclos

ure

of G

over

nmen

t Ass

ista

nce

IAS 2

1 The

Effe

cts of

Cha

nges

in F

oreign

Exc

hang

e Rat

es

IAS 2

2 Bus

ines

s Com

bina

tion

IAS 2

3 Bor

rowin

g Cos

ts

IAS 2

4 Relat

ed P

arty D

isclos

ures

IAS 2

6 Acc

ount

ing

and

Rep

ortin

g by

Ret

irem

ent B

enef

it Plans

IAS 2

7 Con

solid

ated

and

Sep

arat

e Fin

ancial S

tate

men

ts

IAS 2

8 In

vest

men

ts in

Ass

ociate

s

IAS 2

9 Fin

ancial

Rep

ortin

g in H

yper

-infla

tiona

ry E

cono

mies

IAS 3

0 Disclos

ure

in F

inan

cial

Sta

tem

ents o

f Ban

ks a

nd S

imila

r Fin

ancial In

stitu

tions

IAS 3

1 In

tere

sts

in J

oint

Ven

ture

s

IAS 3

2 Fin

ancial

Instru

men

ts: D

isclos

ure

and

Pre

sent

atio

n

IAS 3

3 Ear

ning

s Per

Sha

re

IAS 3

4 In

terim

Fin

ancial R

epor

ting

IAS 3

5 Disco

ntin

uing

Ope

ratio

ns

IAS 3

6 Im

pairm

ent o

f Ass

ets

IAS 3

7 Pro

vision

s, C

ontin

gent

Liabi

lities an

d Con

tinge

nt A

sset

s

IAS 3

8 In

tang

ible A

sset

s

IAS 3

9 Fin

ancial

Instru

men

ts: R

ecog

nitio

n an

d M

easu

rem

ent

IAS 4

0 In

vest

men

t Pro

perty

IAS 4

1 Agr

icultu

re

Applied

Chart No. (3)

213

Percentage of Partly Applied IAS' Disclosure requirements by Yemen Banking Companies

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

IAS

1

IAS

2

IAS

7 C

ash

IAS

8

IAS

10

Eve

nts

IAS

11

IAS

12

IAS

14

IAS

16

IAS

17

IAS

18

IAS

19

IAS

20

IAS

21

Th

e

IAS

22

IAS

23

IAS

24

IAS

26

IAS

27

IAS

28

IAS

29

IAS

30

IAS

31

IAS

32

IAS

33

IAS

34

In

teri

m

IAS

35

IAS

36

IAS

37

IAS

38

IAS

39

IAS

40

IAS

41

Partly Applied

Chart No. (4)

214

Percentage of Not Applied IAS' Disclosure requirements by Yemen Banking Companies

0%5%

10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%85%90%95%

100%

IAS 1

Pre

sent

ation

of F

inan

cial

Sta

tem

ents

IAS 2

Inve

ntor

ies

IAS 7

Cas

h Flo

w S

tate

men

ts

IAS 8

Acc

ount

ing

Policies,

Cha

nges

in A

ccou

ntin

g Estim

ates

and

Error

s

IAS 1

0 Eve

nts Afte

r the

Bal

ance

She

et D

ate

IAS 1

1 Con

stru

ction

Con

tracts

IAS 1

2 In

com

e Tax

es

IAS 1

4 Seg

men

t Rep

ortin

g

IAS 1

6 Pro

perty

, Plant

and

Equ

ipm

ent

IAS 1

7 Le

ases

IAS 1

8 Rev

enue

IAS 1

9 Em

ploy

ee B

enef

its

IAS 2

0 Acc

ount

ing

for G

over

nmen

t Gra

nts

and

Disclos

ure

of G

over

nmen

t Ass

ista

nce

IAS 2

1 The

Effe

cts of

Cha

nges

in F

oreign

Exc

hang

e Rat

es

IAS 2

2 Bus

ines

s Com

bina

tion

IAS 2

3 Bor

rowin

g Cos

ts

IAS 2

4 Relat

ed P

arty D

isclos

ures

IAS 2

6 Acc

ount

ing

and

Rep

ortin

g by

Ret

irem

ent B

enef

it Plans

IAS 2

7 Con

solid

ated

and

Sep

arat

e Fin

ancial S

tate

men

ts

IAS 2

8 In

vest

men

ts in

Ass

ociate

s

IAS 2

9 Fin

ancial

Rep

ortin

g in H

yper

-infla

tiona

ry E

cono

mies

IAS 3

0 Disclos

ure

in F

inan

cial

Sta

tem

ents o

f Ban

ks a

nd S

imila

r Fin

ancial In

stitu

tions

IAS 3

1 In

tere

sts

in J

oint

Ven

ture

s

IAS 3

2 Fin

ancial

Instru

men

ts: D

isclos

ure

and

Pre

sent

atio

n

IAS 3

3 Ear

ning

s Per

Sha

re

IAS 3

4 In

terim

Fin

ancial R

epor

ting

IAS 3

5 Disco

ntin

uing

Ope

ratio

ns

IAS 3

6 Im

pairm

ent o

f Ass

ets

IAS 3

7 Pro

vision

s, C

ontin

gent

Liabi

lities an

d Con

tinge

nt A

sset

s

IAS 3

8 In

tang

ible A

sset

s

IAS 3

9 Fin

ancial

Instru

men

ts: R

ecog

nitio

n an

d M

easu

rem

ent

IAS 4

0 In

vest

men

t Pro

perty

IAS 4

1 Agr

icultu

re

Not Applied

Chart No. (5)

215

Percentage of No Information IAS' Disclosure requirements by Yemen Banking Companies

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

IAS 1

Pre

sent

ation

of F

inan

cial

Sta

tem

ents

IAS 2

Inve

ntor

ies

IAS 7

Cas

h Flo

w S

tate

men

ts

IAS 8

Acc

ount

ing

Policies,

Cha

nges

in A

ccou

ntin

g Estim

ates

and

Error

s

IAS 1

0 Eve

nts Afte

r the

Bal

ance

She

et D

ate

IAS 1

1 Con

stru

ction

Con

tracts

IAS 1

2 In

com

e Tax

es

IAS 1

4 Seg

men

t Rep

ortin

g

IAS 1

6 Pro

perty

, Plant

and

Equ

ipm

ent

IAS 1

7 Le

ases

IAS 1

8 Rev

enue

IAS 1

9 Em

ploy

ee B

enef

its

IAS 2

0 Acc

ount

ing

for G

over

nmen

t Gra

nts

and

Disclos

ure

of G

over

nmen

t Ass

ista

nce

IAS 2

1 The

Effe

cts of

Cha

nges

in F

oreign

Exc

hang

e Rat

es

IAS 2

2 Bus

ines

s Com

bina

tion

IAS 2

3 Bor

rowin

g Cos

ts

IAS 2

4 Relat

ed P

arty D

isclos

ures

IAS 2

6 Acc

ount

ing

and

Rep

ortin

g by

Ret

irem

ent B

enef

it Plans

IAS 2

7 Con

solid

ated

and

Sep

arat

e Fin

ancial S

tate

men

ts

IAS 2

8 In

vest

men

ts in

Ass

ociate

s

IAS 2

9 Fin

ancial

Rep

ortin

g in H

yper

-infla

tiona

ry E

cono

mies

IAS 3

0 Disclos

ure

in F

inan

cial

Sta

tem

ents o

f Ban

ks a

nd S

imila

r Fin

ancial In

stitu

tions

IAS 3

1 In

tere

sts

in J

oint

Ven

ture

s

IAS 3

2 Fin

ancial

Instru

men

ts: D

isclos

ure

and

Pre

sent

atio

n

IAS 3

3 Ear

ning

s Per

Sha

re

IAS 3

4 In

terim

Fin

ancial R

epor

ting

IAS 3

5 Disco

ntin

uing

Ope

ratio

ns

IAS 3

6 Im

pairm

ent o

f Ass

ets

IAS 3

7 Pro

vision

s, C

ontin

gent

Liabi

lities an

d Con

tinge

nt A

sset

s

IAS 3

8 In

tang

ible A

sset

s

IAS 3

9 Fin

ancial

Instru

men

ts: R

ecog

nitio

n an

d M

easu

rem

ent

IAS 4

0 In

vest

men

t Pro

perty

IAS 4

1 Agr

icultu

re

No Information

Chart No. (6)

216

Percentage of Not Applicable IAS' Disclosure requirements by Yemen Banking Companies

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

IAS 1

Pre

sent

atio

n of

Fin

ancial

Sta

tem

ents

IAS 2

Inve

ntor

ies

IAS 7

Cas

h Flo

w S

tate

men

ts

IAS 8

Acc

ount

ing

Policie

s, C

hang

es in

Acc

ount

ing

Estim

ates

and

Erro

rs

IAS 1

0 Eve

nts

After t

he B

alan

ce S

heet

Dat

e

IAS 1

1 Con

stru

ctio

n Con

tract

s

IAS 1

2 In

com

e Tax

es

IAS 1

4 Seg

men

t Rep

ortin

g

IAS 1

6 Pro

perty

, Pla

nt a

nd E

quip

men

t

IAS 1

7 Le

ases

IAS 1

8 Rev

enue

IAS 1

9 Em

ploy

ee B

enef

its

IAS 2

0 Acc

ount

ing

for G

over

nmen

t Gra

nts

and

Disclos

ure

of G

over

nmen

t Ass

ista

nce

IAS 2

1 The

Effe

cts

of C

hang

es in

For

eign

Exc

hang

e Rat

es

IAS 2

2 Bus

ines

s Com

bina

tion

IAS 2

3 Bor

rowin

g Cos

ts

IAS 2

4 Rel

ated

Par

ty D

isclos

ures

IAS 2

6 Acc

ount

ing

and

Rep

ortin

g by

Ret

irem

ent B

enef

it Pla

ns

IAS 2

7 Con

solid

ated

and

Sep

arat

e Fin

ancial

Sta

tem

ents

IAS 2

8 In

vest

men

ts in

Ass

ocia

tes

IAS 2

9 Fin

ancial

Rep

ortin

g in

Hyp

er-in

flatio

nary

Eco

nom

ies

IAS 3

0 Disclos

ure

in F

inan

cial

Sta

tem

ents

of B

anks

and

Sim

ilar F

inan

cial

Inst

itutio

ns

IAS 3

1 In

tere

sts

in J

oint

Ven

ture

s

IAS 3

2 Fin

ancial

Inst

rum

ents

: Disclos

ure

and

Prese

ntat

ion

IAS 3

3 Ear

ning

s Per

Sha

re

IAS 3

4 In

terim

Fin

ancial

Rep

ortin

g

IAS 3

5 Disco

ntin

uing

Ope

ratio

ns

IAS 3

6 Im

pairm

ent o

f Ass

ets

IAS 3

7 Pro

vision

s, C

ontin

gent

Lia

bilitie

s an

d Con

tinge

nt A

sset

s

IAS 3

8 In

tang

ible

Ass

ets

IAS 3

9 Fin

ancial

Inst

rum

ents

: Rec

ogni

tion

and

Mea

sure

men

t

IAS 4

0 In

vest

men

t Pro

perty

IAS 4

1 Agr

icul

ture

Not Applicable

Chart No. (7)

217

Application of IAS' disclosure requirements by Yemen banking companies

28.70%

2.54%

6.80%

8.63%

53.33%

Applied

Partly Applied

Not Applied

No Information

Not Applicable

Chart No. (8)

218

5.2 Analyzing India banking companies with India Accounting Standards

5.2.1 AS 1 Disclosure of Accounting Policies’ Disclosure Requirements

Table (40) AS 1 Disclosure of Accounting Policies’ Disclosure Requirements



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of All

significant accounting

policies

17 0 0 0 0 17

Disclose accounting

policies in one place.

17 0 0 0 0 17


the accounting policies

17 0 0 0 0 17

Disclosure If a

fundamental accounting

assumption is not followed

17 0 0 0 0 17

All the banks i.e. 100% of the sample so analyzed have followed all the requirements of

this standard which stated above see Table 40.

5.2.2 AS 2 Valuation of Inventories’ Disclosure Requirements

Table (41) AS 2 Valuation of Inventories’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of accounting

policies

0 0 0 0 17 17

Disclosure of carrying


0 0 0 0 17 17

Disclosure of Information

about different

0 0 0 0 17 17

219

classifications of

inventories

From the explanation and disclosure requirements of this standard given in chapter 3 it is

clear that this standard is not applicable by banking companies, even the analyzed

financial statements of all the banks i.e. 100% approved that fact as the components of

their financial statements do not present any inventories which will make this standard

applicable see Table 41 above.

5.2.3 AS 3 Cash Flow Statements’ Disclosure Requirements

Table (42) AS 3 Cash Flow Statements’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Present Cash Flow

Statements

17 0 0 0 0 17

Present cash flow arising

from each operating,

investing and financing

activities separately

17 0 0 0 0 17

Cash flows arising from

activities of a financial

institution reported on a

net basis

17 0 0 0 0 17

Disclose the method used

to report cash flows from

operating activities

17 0 0 0 0 17

Other disclosure

requirements

17 0 0 0 17

From Table 42 which present the analyses’ result, all the banks i.e. 100% have followed

this standard and have disclosed requirements disclosure as stated above. Except the

requirements of disclosing Components of Cash and Cash Equivalents, and the amount of

220

significant cash and cash equivalent balances held by the enterprise that are not available

for use by it, 12 banks did not disclose as require by this standard.

5.2.4 AS 4 Contingencies and Events Occurring After the Balance Sheet Date’s

Disclosure Requirements

Table (43) AS 4 Contingencies and Events Occurring After the Balance Sheet Date’s



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total


loss in the profit or loss

statement

17 0 0 0 0 17


loss in the note of financial

statements

17 0 0 0 0 17

Disclosure of events

occurring after the balance

sheet date

2 0 0 15 0 17

5.2.4.1 Disclosure of contingent loss in the profit or loss statement

Table 43 indicates that all banks i.e. 100% have followed this requirement.

5.2.4.2 Disclosure of contingent loss in the note of financial statements

This requirement also has been followed by all banks i.e. 100% see Table 43 above.

5.2.4.3 Disclosure of events occurring after the balance sheet date

This requirement should be apply only if the events occurred, so only 2 banks i.e. 11.76%

of the sample have disclosed required information as they have events occurred after the

balance sheet date, but in respect of 15 banks i.e. 88.24% of the sample, I did not find any

information disclosed but this doesn’t mean that those banks not following this

requirement as they maybe not having information need to be disclosed.

5.2.5 AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in

Accounting Policies’ Disclosure Requirements

221

Table (44) AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes

in Accounting Policies’ Disclosure Requirements application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of net profit or

loss for the period

17 0 0 0 0 17

Disclosure of

extraordinary Items

2 0 0 0 15 17

Disclosure of Prior Period

Items

2 0 0 0 15 17

Disclosure of Changes in

Accounting Estimates

17 0 0 0 0 17

Disclosure of Changes in

Accounting Policies

8 0 0 0 9 17

5.2.5.1 Disclosure of net profit or loss for the period

Through this study I found all the banks i.e. 100% of the sample so analyzed followed

this requirement.

5.2.5.2 Disclosure of extraordinary Items

From the nature of extraordinary items it is clear that those items not occurring

continually and it is not part of the ordinary operation of the enterprise, so if it occurred it

should be disclosed separately which only 2 (Bank of India & The Bank of Rajasthan

Ltd.) banks i.e. 11.76% have disclosed required information in this respect, but as the

other banks i.e. 88.34% of the sample did not have information to be disclosed, this

requirement not applicable by them.

5.2.5.3 Disclosure of Prior Period Items

Only 2 banks (Oriental Bank of Commerce & National Bank for Agriculture) i.e. 11.76%

which they have prior period items disclose required disclosure as it is applicable by

them, but as the rest of banks i.e. 88.24% did not have those items this requirement is not

applicable by them.

222

5.2.5.4 Disclosure of Changes in Accounting Estimates

The effect of a change in an accounting estimate should be included in the determination

of net profit or loss in: the period of the change, if the change affects the period only; or

the period of the change and future periods, if the change affects both.

All banks i.e. 100% followed this requirement by disclosing about them in their financial

statements.

5.2.5.5 Disclosure of Changes in Accounting Policies

The bank who has any change in the accounting policy adopted by them has disclosed

required disclosure as they have to apply it, they were 8 banks i.e. 47.05% of the sample,

and in respect of the bank who did not change the accounting policy adopted by them do

not have to make any disclosure as this requirement will not be applicable by them.

5.2.6 AS 6 Depreciation Accounting’s Disclosure Requirements

Table (45) AS 6 Depreciation Accounting’s Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of historical

cost or revalued cost

17 0 0 0 0 17


the amount of depreciation

17 0 0 0 0 17

Disclose the depreciation

accounting policies

17 0 0 0 0 17

Disclosure where the

depreciable assets are

revalued

7 0 0 0 10 17

5.2.6.1 Disclosure of historical cost or revalued cost

All the banks i.e. 100% have disclosed either historical cost or revalued cost as these cost

stated in their financial statements.

5.2.6.2 Disclosure in respect of the amount of depreciation

This requirement has been followed by all banks i.e. 100% see Table 45 above.

223

5.2.6.3 Disclose the depreciation accounting policies

Also this requirement were followed by all the banks i.e. 100% as all the banks under this

study disclosed information in this respect as required by this standard. But I have

observed that the rate or useful life of the depreciable assets in India have been specified

by schedule XIV to the companies Act, 1956 on fixed assets for each enterprise and this

standard require disclosure of the rate or useful life only if the enterprise apply different

rate other than specified by the Act which will make external users i.e. foreigner user

need to search for that Act to understand the financial statements in this respect.

5.2.6.4 Disclosure where the depreciable assets are revalued

The banks that revaluate their assets disclosed effect on the amount of depreciation as

required in this standard, they were 7 banks i.e. 41.18% of the sample and for 10 banks

i.e. 58.82% did not disclose any information in this respect as they did not revaluate their

assets which make this requirement not applicable by them.

5.2.7 AS 7 Construction Contracts’ Disclosure Requirements

Table (46) AS 7 Construction Contracts’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total


revenue

0 0 0 0 17 17

Disclosure for contracts in

progress

0 0 0 0 17 17


assets and liability

0 0 0 0 17 17

It is clear from the title of this standard and Table 46 that this standard is not applicable

by banking companies at all and should be applied only by construction contractor.

5.2.8 AS 9 Revenue Recognition’s Disclosure Requirements

Table (47) AS 9 Revenue Recognition’s Disclosure Requirements application

percentage


224


ation

Applicable

Disclosure of accounting

policies related to revenue

recognition

17 0 0 0 0 17

Disclose the circumstances

if revenue recognition has

been postponed

17 0 0 0 0 17

5.2.8.1 Disclosure of accounting policies related to revenue recognition

All the banks i.e. 100% of the sample have disclosed the required information as stated

by this standard which is clear in Table 47 above.

5.2.8.2 Disclose the circumstances if revenue recognition has been postponed

Even some banks have disclosed the fact that they do not have any significant

information need to be disclosed but all of them i.e. 100% of the sample have disclosed

the required information in this respect.

5.2.9 AS 10 Accounting for Fixed Assets’ Disclosure Requirements

Table (48) AS 10 Accounting for Fixed Assets’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose gross and net

book values of fixed assets

17 0 0 0 0 17

Disclosure of expenditure

of fixed assets in case of

construction or acquisition

17 0 0 0 0 17

Disclosure in case assets

revaluated

2 5 0 0 10 17

5.2.9.1 Disclose gross and net book values of fixed assets

Thru my study analyses I have noted that all the banks i.e. 100% have followed this

requirement.

225

5.2.9.2 Disclosure of expenditure of fixed assets in case of construction or acquisition

This requirement also has been followed by all the banks i.e. 100% as required.

5.2.9.3 Disclosure in case assets revaluated

Only Vijaya Bank & The United Western Bank i.e. 11.76% have disclosed required

information as stated in this standard and 5 banks i.e. 29.41 % of the sample have partly

applied this requirement as they disclosed only the revalued amounts of their fixed assets

and did not disclosed the other information about the date of revaluation or the method

adopted in revaluation etc. In respect of the rest of the sample i.e. 58.83% this

requirement is not applicable by them as they didn’t revalued their fixed assets and their

fixed assets stated at the balance sheet at their cost which mean that they do not have

information to disclose in this manner.

5.2.10 AS 11 The Effects of Changes in Foreign Exchange Rates’ Disclosure

Requirements

Table (49) AS 11 The Effects of Changes in Foreign Exchange Rates’ Disclosure



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of amount of

exchange differences in

the net profit or loss

16 0 0 1 0 17

Disclosure of amount

adjusted in fixed assets

2 0 0 15 0 17


forward exchange

contracts

0 16 0 1 0 17

Disclosure of foreign

currency risk management

policy

13 0 4 0 0 17

Disclosure of foreign

exchange translation

2 0 15 0 0 17

226

reserve

Disclose if the reporting

currency is different

0 0 0 0 17 17


classification of foreign

operation

0 0 0 17 0 17

5.2.10.1 Disclosure of amount of exchange differences in the net profit or loss

Table 49 indicate that 16 banks i.e. 94.12% followed this requirement and only 1 bank (I

D B I Bank Ltd.) i.e. 5.88% did not present any information in this respect.

5.2.10.2 Disclosure of amount adjusted in fixed assets

Only Bank of India & National Bank for Agriculture i.e. 11.76% have followed this

requirement but the rest i.e. 88.24% did not have any information about this requirement.

5.2.10.3 Disclosure in respect of forward exchange contracts

This requirement have been partly applied by 16 banks i.e. 94.12% as they have disclosed

about forward exchange contracts but they did not specified the amount in this respect

exactly as it was for the differences of foreign exchange as all. But (IDBI Bank Ltd.) i.e.

5.88% has no information in this respect as required.

5.2.10.4 Disclosure of foreign currency risk management policy

I have found required information disclosed by 13 banks i.e. 76.47% of the sample, but 4

banks i.e. 23.53% of the sample did not apply this requirement.

5.2.10.5 Disclosure of foreign exchange translation reserve

By 15 banks i.e. 88.24% of the sample this requirement not applied and only Bank of

India & National Bank for Agriculture i.e. 11.76% have followed it as they make the

reserve as required.

5.2.10.6 Disclose if the reporting currency is different

This requirement is not applicable by all the banks under this study i.e. 100% as all of

them report in same currency which made them not applicable for this requirement.

5.2.10.7 Disclosure of change in classification of foreign operation

I did not find any information in this respect in all banks i.e. 100% of the sample.

5.2.11 AS 12 Accounting for Government Grants’ Disclosure Requirements

227

Table (50) AS 12 Accounting for Government Grants’ Disclosure Requirements



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total


policy adopted for

government grants

2 0 0 0 15 17

Disclose the nature and

extent of government

grants

2 0 0 0 15 17

5.2.11.1 Disclose the accounting policy adopted for government grants

This requirement is applicable by only 2 banks (The Bank of Rajasthan Ltd. & National

Bank for Agriculture) i.e. 11.76% as they have got government grant and disclosed

required information, but in respect of 15 banks i.e. 88.24% this standard is not

applicable for them as they didn’t get government grant at all.

5.2.11.2 Disclose the nature and extent of government grants

Same result as the first requirement has been found as 2 banks i.e. 11.76% applied and 15

banks i.e. 88.24% not applicable for them.

5.2.12 AS 13 Accounting for Investments’ Disclosure Requirements

Table (51) AS 13 Accounting for Investments’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total


policies for valuation of

investments

0 0 0 0 17 17

Disclosure for

classification of

investments

0 0 0 0 17 17

228

Disclosure of the amounts

included in profit and loss

statement of investments

0 0 0 0 17 17

Disclosure of significant

restrictions on the right of

ownership

0 0 0 0 17 17

Disclose the aggregate

amount of quoted and

unquoted investments

0 0 0 0 17 17

From the scope of this standard it is clear that this standard is not applicable in respect of

banking companies and so its disclosure requirements, but the Central Bank of India has

issue guidance note for the banking companies in India in respect of investments, which

in my thought it is not right for the accounting standard issued in India to be limited and

not given the treatment for the investment in banking.

5.2.13 AS 14 Accounting for Amalgamations’ Disclosure Requirements

Table (52) AS 14 Accounting for Amalgamations’ Disclosure Requirements



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosures in the first


following the

amalgamation

6 0 0 0 11 17

Disclosure For

amalgamations accounted

for under the pooling of

interests method

4 0 0 0 13 17

Disclosure For

amalgamations accounted

for under the purchase

2 0 0 0 15 17

229

method

Disclosure for

Amalgamation after the

Balance Sheet Date

1 0 0 0 16 17

5.2.13.1 Disclosures in the first financial statements following the amalgamation

The 6 banks i.e. 35.30% who has been amalgamated have disclosed required information,

and the bank that did not go for amalgamation did not require making any disclosure

hence is not applicable for them; they were 11 banks i.e. 64.70% of the sample.

5.2.13.2 Disclosure For amalgamations accounted for under the pooling of interests

method

Four banks i.e. 23.53% have applied this requirement but 13 banks i.e. 76.47% did not

follow as it is not applicable for them.

5.2.13.3 Disclosure For amalgamations accounted for under the purchase method

Also this requirement is applicable by 2 banks i.e. 11.76% and not applicable by 15 banks

i.e. 88.24%.

5.2.13.4 Disclosure for Amalgamation after the Balance Sheet Date

Only (IDBI Bank Ltd.) i.e. 5.88% followed this requirement as it is applicable by them

but the other 16 banks i.e. 94.12% have no information to be disclosed in this respect

hence it is not applicable by them.

5.2.14 AS 15 Accounting for Retirement Benefits in the Financial Statements of

Employers’ Disclosure Requirements

Table (53) AS 15 Accounting for Retirement Benefits in the Financial Statements of

Employers’ Disclosure Requirements application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose the method

determined retirement

benefit cost

17 0 0 0 0 17

Disclosure of actuarial

valuation

17 0 0 0 0 17

230

5.2.14.1 Disclose the method determined retirement benefit cost

All the banks i.e. 100% have disclosed required information.

5.2.14.2 Disclosure of actuarial valuation

Also this requirement has been followed by all the banks i.e. 100% of the sample under

this study.

5.2.15 AS 16 Borrowing Costs’ Disclosure Requirements

Table (54) AS 16 Borrowing Costs’ Disclosure Requirements application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of the

accounting policy

17 0 0 0 0 17

Disclosure of the amount

of borrowing costs

capitalized

4 0 0 13 0 17

5.2.15.1 Disclosure of the accounting policy

Even the disclosure made by the banks is not clear in my opinion, all banks i.e. 100%

have followed this requirement.

5.2.15.2 Disclosure of the amount of borrowing costs capitalized

Through my study I have noted required disclosure only by 4 banks i.e. 23.53% and no

information have been found by the rest 13 banks i.e. 76.47%.

5.2.16 AS 17 Segment Reporting’s Disclosure Requirements

Table (55) AS 17 Segment Reporting’s Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total


Primary Reporting Format

16 0 0 0 1 17


Secondary Segment

5 0 0 0 12 17

231

Information


5.2.16.1 Disclosure in case of Primary Reporting Format

Only (IDBI Bank Ltd.) i.e. 5.88% have disclosed that this standard is not applicable by

them as they have only one kind of operation, but 16 banks i.e. 94.12% of the sample

have disclosed even if Vijaya Bank have disclose about segment only in consolidated

balance sheet.

5.2.16.2 Disclosure in case of Secondary Segment Information

Five banks i.e. 29.11% have applied this requirement, but the rest 11 banks i.e. 70.59%

have disclosed that they don’t have geography segment to make disclosure about them

which mean this requirement is not applicable by them.

5.2.16.3 Other Disclosures

In this requirement, only (IDBI Bank Ltd.) i.e. 5.88% have disclosed that this standard is

not applicable by them as they have only one kind of operation, but 16 banks i.e. 94.12%

of the sample have disclosed even if Vijaya Bank have disclose about segment only in

consolidated balance sheet.

5.2.17 AS 18 Related Party Disclosures’ Disclosure Requirements

Table (56) AS 18 Related Party Disclosures’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of Name and

nature of the related party

relationship where control

exists

17 0 0 0 0 17

Disclosure of transactions

between related parties

17 0 0 0 0 17

5.2.17.1 Disclosure of Name and nature of the related party relationship where

control exists

Table 17 above clear that all the banks i.e. 100% followed this requirement.

232

5.2.17.2 Disclosure of transactions between related parties

Also this requirement has been followed by all the banks i.e. 100% as required.

5.2.18 AS 19 Leases’ Disclosure Requirements (In the Financial Statements of

Lessors)

Table (57) AS 19 Leases’ Disclosure Requirements (In the Financial Statements of

Lessors) application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total


finance leases

3 0 0 3 11 17


operating leases

10 0 0 3 4 17


I have realized that this requirement is not applicable by 11 banks i.e. 64.70% as they did

not have this kind of leases which need disclosure, and 3 banks i.e. 17.65% have

disclosed as required, but in respect of 3 banks i.e. 17.65% I found no information

indicate either following or not following this requirement.


In this requirement 10 banks i.e. 58.82% have followed, and not applicable by 4 banks

i.e. 23.53% as they don’t have information need to be disclosed, but 3 banks i.e. 17.65% I

didn’t found any information in this respect.

5.2.19 AS 19 Leases’ Disclosure Requirements (In the Financial Statements of

Lessees)

Table (58) AS 19 Leases’ Disclosure Requirements (In the Financial Statements of

Lessees) application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total


finance leases

0 0 0 0 17 17

233


operating leases

11 0 0 3 3 17


I think because of the nature of banking operation as a finance enterprise are not in need

to have this kind of leases which make this requirement not applicable by banking

companies and this what I found it in my study as all banks i.e. 100% did not present any

information as it is not applicable by them because they are not dealing with this kind of

leases.


This requirement has been applied by 11 banks i.e. 64.70%, and no information for 3

banks i.e. 17.65%, and not applicable by 3 banks i.e. 17.65% as they didn’t deal with this

kind of leases.

5.2.20 AS 20 Earnings Per Share’s Disclosure Requirements

Table (59) AS 20 Earnings Per Share’s Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of basic and

diluted earnings per share

10 6 1 0 0 17

Disclosure of Numerator

and reconciliation

16 0 1 0 0 17

Disclosure of denominator

and reconciliation

16 0 1 0 0 17

Disclosure of nominal

value of shares along with

earning per share

14 0 3 0 0 17

5.2.20.1 Disclosure of basic and diluted earnings per share

Only National Bank for Agriculture i.e. 5.88% did not apply this standard as I didn’t find

any disclosure about earning per share at all, 10 banks i.e. 58.82% have disclosed

required disclosure, but remaining 6 banks i.e. 35.30% have partly applied this

234

requirement as they disclosed required information but they did not make disclosure of

the same in the face of the profit and loss A/C as required by this standard.

5.2.20.2 Disclosure of Numerator and reconciliation

Also only National Bank for Agriculture i.e. 5.88% did not apply this standard as I didn’t

find any disclosure about earning per share at all, but the rest 16 banks i.e. 94.12%

applied as required.

5.2.20.3 Disclosure of denominator and reconciliation

Same result as previous requirement 16 banks i.e. 94.12% applied and 1 (bank national

Bank for Agriculture) i.e. 5.88% did not apply this standard.

5.2.20.4 Disclosure of nominal value of shares along with earning per share

In this requirement 14 banks i.e. 82.35% followed, and 3 banks i.e. 17.65% did not

disclosed required disclosure.

5.2.21 AS 21 Consolidated Financial Statements’ Disclosure Requirements

Table (60) AS 21 Consolidated Financial Statements’ Disclosure Requirements



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose the reasons for

not consolidating a

subsidiary

2 0 1 0 14 17

Disclosure about using

uniform accounting

policies for like

transactions

9 0 1 0 7 17

Disclose a list of all

subsidiaries

10 0 1 0 6 17


applicable

8 0 1 0 8 17

235

5.2.21.1 Disclose the reasons for not consolidating a subsidiary

I have noted that 2 banks i.e. 11.76% have disclosed the reason for not consolidating a

subsidiary, and 1 bank (The Bank of Rajasthan Ltd.) i.e. 5.88% did not applied this

standard at all even they have subsidiary, but for the rest banks i.e. 82.36% this

requirement not applicable for them as they have present their subsidiaries in the

consolidate financial statements.

5.2.21.2 Disclosure about using uniform accounting policies for like transactions

Only The Bank of Rajasthan Ltd. i.e. 5.88% as I said above didn’t apply this standard,

and 9 banks i.e. 52.94% applied, but this requirement not applicable for 7 banks i.e.

41.18% as there were no information need to be disclosed in respect of this requirement.

5.2.21.3 Disclose a list of all subsidiaries

Also only The Bank of Rajasthan Ltd. i.e. 5.88% not applied, and 10 banks i.e. 58.82%

followed this requirement, but in respect of the rest 6 banks i.e. 35.30% this requirement

not applicable for them as they don’t have subsidiary.


As we can see this requirement is applied if applicable only so 8 banks i.e. 47.06% have

applied, 8 banks i.e. 47.o6% not applicable for them, but only The Bank of Rajasthan

Ltd. i.e. 5.88% did not applied.

5.2.22 AS 22 Accounting for Taxes on Income’s Disclosure Requirements

Table (61) AS 22 Accounting for Taxes on Income’s Disclosure Requirements



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclosure of Deferred tax

assets and liabilities

separately

16 1 0 0 0 17

Disclosure of The break-

up of deferred tax assets

and deferred tax liabilities

16 1 0 0 0 17

Disclose The nature of the 16 0 1 0 0 17

236

evidence supporting the

recognition of deferred tax

assets

5.2.22.1 Disclosure of Deferred tax assets and liabilities separately

The Karnataka Bank Ltd. i.e. 5.88% have partly applied this requirement as they did not

recognize deferred tax assets, but the rest 16 banks i.e. 94.12% have followed this

requirement.

5.2.22.2 Disclosure of The break-up of deferred tax assets and deferred tax liabilities

Also this requirement have been partly applied by The Karnataka Bank Ltd. i.e. 5.88%

for the same reason as previous, and 16 banks i.e. 94.12% have applied.

5.2.22.3 Disclose the nature of the evidence supporting the recognition of deferred

tax assets

Only The Karnataka Bank Ltd. i.e. 5.88% has not applied this requirement, and 16 banks

i.e. 94.12% have applied this requirement as required.

5.2.23 AS 23 Accounting for Investments in Associates in Consolidated Financial

Statements’ Disclosure Requirements

Table (62) AS 23 Accounting for Investments in Associates in Consolidated

Financial Statements’ Disclosure Requirements application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose The reasons for

not applying the equity

method

0 0 1 10 6 17

Disclosure of

Goodwill/capital reserve

arising on the acquisition

of an associate

6 0 1 10 0 17

Disclosure of an

appropriate listing and

description of associates

6 0 1 10 0 17

237

Separate disclosure in the

consolidated balance sheet

and profit & loss A/C

6 0 1 10 0 17


applicable

3 0 1 10 3 17

5.2.23.1 Disclose the reasons for not applying the equity method

I have realized that only IDBI Bank Ltd. i.e. 5.88% did not applied this standard even

they have investment in associates and they have presented consolidate balance sheet,

and 10 banks i.e. 58.82% have no information in respect of this standard it may be

because they did not present consolidate balance sheet. But in respect of the rest 6 banks

i.e. 35.30% this standard is not applicable for them as some of them applied equity

method and the other do not have investment in associates.

5.2.23.2 Disclosure of Goodwill/capital reserve arising on the acquisition of an

associate

Also only IDBI Bank Ltd. i.e. 5.88% did not applied this standard even they have

investment in associates and they have presented consolidate balance sheet, 6 banks i.e.

35.30% have disclosed required disclosure, and 10 banks i.e. 58.82% have no

information in respect of this standard it may be because they did not present consolidate

balance sheet.

5.2.23.3 Disclosure of an appropriate listing and description of associates

Same result as previous requirement I realized for this requirement only IDBI Bank Ltd.

i.e. 5.88% did not applied this standard even they have investment in associates and they

have presented consolidate balance sheet, 6 banks i.e. 35.30% have disclosed required

disclosure, and 10 banks i.e. 58.82% have no information in respect of this standard it

may be because they did not present consolidate balance sheet.

5.2.23.4 Separate disclosure in the consolidated balance sheet and profit & loss A/C

Here also I found only IDBI Bank Ltd. i.e. 5.88% did not applied this standard even they

have investment in associates and they have presented consolidate balance sheet, 6 banks

i.e. 35.30% have disclosed required disclosure, and 10 banks i.e. 58.82% have no

information in respect of this standard it may be because they did not present consolidate

balance sheet.

238


For 3 banks of the sample i.e. 17.65% this requirement is not applicable by them as they

don’t have information need to be disclosed in this respect, 3 banks i.e. 17.65% have

applied, and same 10 banks i.e. 58.82% have on information in this requirement, but

IDBI Bank Ltd. i.e. 5.88% did not applied this standard even they have investment in

associates and they have presented consolidate balance sheet.

5.2.24 AS 24 Discontinuing Operations’ Disclosure Requirements

Table (63) AS 24 Discontinuing Operations’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Initial Disclosure 0 0 17 0 0 17


Updating the Disclosures 0 0 17 0 0 17

Separate Disclosure for

Each Discontinuing

Operation

0 0 17 0 0 17

First full this standard is out of this study scope as AS 24 is mandatory in respect of

accounting periods commencing on or after 1-4-2004. and this what I found in my

analysis as all the banks under this study i.e. 100% did not applied this standard hence

they didn’t apply any of it’s disclosure requirement.

5.2.25 AS 25 Interim Financial Reporting’s Disclosure Requirements

Table (64) AS 25 Interim Financial Reporting’s Disclosure Requirements



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

Disclose significant

change in an estimated

amount reported in an

0 0 0 17 0 17

239

interim period

5.2.25.1 Disclosure in Annual Financial Statements

During my analysis of the banks financial statements I did not find any information in

respect of this standard by all banks i.e. 100% which it may be mean either this

requirement not applicable by them or they did not apply this standard.

5.2.26 AS 26 Intangible Assets’ Disclosure Requirements

Table (65) AS 26 Intangible Assets’ Disclosure Requirements application percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total

General disclosure 5 3 9 0 0 17


specific case of intangible

assets

0 0 9 0 8 17

Disclosure of Research

and Development

Expenditure

5 0 12 0 0 17

5.2.26.1 General disclosure

This requirement have been followed by 5 banks i.e. 29.41% of the sample analyzed, 3

banks i.e. 17.65% have partly applied this requirement as they didn’t make required

disclosure for the gross carrying amount and accumulated amortization of intangible

assets, but the rest 9 banks i.e. 52.94% did not applied this requirement.

5.2.26.2 Disclosure in respect of specific case of intangible assets

For 8 banks i.e. 47.06% this requirement as it is for specific intangible assets only which

they don’t have, and 9 banks i.e. 52.94% of the sample did not applied.

5.2.26.3 Disclosure of Research and Development Expenditure

The financial statements should disclose the aggregate amount of research and

development expenditure recognized as an expense during the period. Only 5 banks i.e.

29.41% have disclosed required information, and the rest 12 banks i.e. 70.59% did not

followed this requirement.

240

5.2.27 AS 27 Financial Reporting of Interests in Joint Ventures’ Disclosure

Requirements

Table (66) AS 27 Financial Reporting of Interests in Joint Ventures’ Disclosure



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total


Liabilities

4 0 0 4 9 17

Disclosure of

commitments in respect of

its interests in joint

ventures

4 0 0 4 9 17

Disclose a listing and

description of interests in

significant joint ventures

4 0 0 4 9 17

We can see in Table 66 above that all the requirement have same result as 4 banks i.e.

23.53% have applied all the requirement as required, 4 banks i.e. 23.53% have no

information in this requirements but this may be because they did not present consolidate

balance sheet or not having this kind of investment which made this standard not

applicable by them, but this requirements are not applicable by the rest 9 banks i.e.

52.94% as I have realized from my study that they didn’t have this kind of investment.

5.2.28 AS 28 Impairment of Assets’ Disclosure Requirements

Table (67) AS 28 Impairment of Assets’ Disclosure Requirements application

percentage


Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total


impairment losses

recognized in the income

1 0 16 0 0 17

241

statement


impairment losses

recognized directly against

revaluation surplus

0 0 16 0 1 17


An enterprise that applies

IAS 14 Segment Reporting

0 0 16 0 1 17

Disclose If an impairment

loss for an individual asset

or a cash-generating unit is

material to the financial

statements

0 0 16 0 1 17

Disclosure If an

impairment loss are

material in aggregate to

the financial statements

1 0 16 0 0 17

Even if this standard is out of this study but I found only Centurion Bank i.e. 5.88% have

applied all the requirements of this standard which is applicable for them, and all the rest

16 banks i.e. 94.12% of the sample did not follow this standard hence they didn’t applied

all the disclosure requirement of this standard, see Table 67 above.

5.2.29 AS 29 Provisions, Contingent Liabilities and Contingent Assets’ Disclosure

Requirements

Table (68) AS 29 Provisions, Contingent Liabilities and Contingent Assets’



Applied

Not

Applied

No

Inform

ation

Not

Applicable

Total


amount of provision

17 0 0 0 0 17

Disclosure about the 17 0 0 0 0 17

242

provision

Disclose a brief

description of the

contingent liability and

contingent Assets

17 0 0 0 0 17

What I have found in my analysis data of all 17 banks i.e. 100% that they have followed

all the disclosure requirements of this standard even if this standard is out of this study

which I think because of the instruction of the Reserve Bank of India and the Accounting

Standard 4 (Contingencies and Events Occurring after the Balance Sheet date)

5.2.30 Summarized of all disclosure requirements application result for each India

AS

Table (69) Summarized of all disclosure requirements application result for each

India AS


Applie

d

Not

Applied

No

Informat

ion

Not

Applicable

AS

1

Disclosure of Accounting

Policies

100% 0 0 0 0

AS

2

Valuation of Inventories 0 0 0 0 100%

AS

3

Cash Flow Statements 100% 0 0 0 0

AS

4

Contingencies and

Events Occurring after

the Balance Sheet Date

70.6% 0 0 29.4 0

AS

5

Net Profit or Loss for the

Period, Prior Period

Items and Changes in

Accounting Policies

54% 0 0 0 46%

AS

6

Depreciation Accounting 85.3% 0 0 0 14.7%

243

AS

7

Construction Contracts 0 0 0 0 100%

AS

9

Revenue Recognition 100% 0 0 0 0

AS

10

Accounting for Fixed

Assets

70.6% 9.8% 0 0 19.6%

AS

11

The Effects of Changes

in Foreign Exchange

Rates

27.7% 13.4% 16% 28.6% 14.3%

AS

12

Accounting for

Government Grants

11.8% 0 0 0 88.2%

AS

13

Accounting for

Investments

0 0 0 0 100%

AS

14

Accounting for

Amalgamations

19.1% 0 0 0 80.9%

AS

15

Accounting for

Retirement Benefits in

the Financial Statements

of Employers (recently

revised and titled as

'Employee Benefits')

100% 0 0 0 0

AS

16

Borrowing Costs 62% 0 0 38% 0

AS

17

Segment Reporting 72.5% 0 0 0 27.5%

AS

18

Related Party Disclosures 100% 0 0 0 0

AS

19

Leases 35.3% 0 0 13.2% 51.5%

AS Earnings Per Share 82.4% 8.8% 8.8% 0 0

244

20

AS

21

Consolidated Financial

Statements

42.6% 0 5.9% 0 51.5%

AS

22

Accounting for Taxes on

Income

94.1% 3.9% 2% 0 0

AS

23

Accounting for Investments

in Associates in

Consolidated Financial

Statements

24.7% 0 5.9% 58.8% 10.6%

AS

24

Discontinuing Operations

Further, As 10 deals with

accounting for fixed

assets retired from active

use.

0 0 100% 0 0

AS

25

Interim Financial

Reporting

0 0 0 100% 0

AS

26

Intangible Assets 19.6% 5.9% 58.8% 0 15.7%

AS

27

Financial Reporting of

Interests in Joint

Ventures

23.5% 0 0 23.5% 53%

AS

28

Impairment of Assets 2.4% 0 94% 0 3.6%

AS

29

Provisions, Contingent

Liabilities and

Contingent Assets

100% 0 0 0 0

Total percentage 50.26% 1.48% 10.34% 10.34% 27.58%

Total percentage with

ignoring disclosure

requirements not

applicable

69.4% 2.05% 14.27% 14.28% Ignored

245

5.2.30.1 India AS’ Disclosure requirements Applied

From Table 69 above which show the application of each India AS’ disclosure

requirements it is clear that the highest percentage was 50.26% which can be increased to

69.45 if ignored not applicable requirements by banking companies in India for applied

AS which indicate the development of accounting practices in India. See also chart No.

10.

5.2.30.2 India AS’ Disclosure requirements Partly applied

Partly application of IAS means that the banking companies applied part of the

accounting standards requirements and ignore the other which indicate the weaknesses of

the accounting practices or misapplication by some banking companies in India as

percentage was the lowest percentage it show only 1.48% and increased to 2.05% if not

applicable requirements percentage ignored. See also chart No. 11.

5.2.30.3 India AS’ Disclosure requirements Not applied

The requirements of India AS which not applied by banking companies indicated by

Table 69 was 10.34% which increased to 14.27% when ignored not applicable

requirements indicate the requirements which can be applied by banking companies but

the banking companies not applied. This indicates the conflict that I have observe

between India AS and instructions issued by Reserve bank of India which the banking

companies given the most consideration to their instructions. See also chart No. 12.

5.2.30.4 No information of India AS’ Disclosure requirements

No information about AS that means throughout of this study I didn’t find any

information indicated the application or not application etc. of some requirements of

India AS which is 10.34% and increased to 14.28% with the ignorance of not applicable

requirements and what I have observed that is because of the conflict between India AS

and Reserve Bank of India’s instructions which I noted all India banks focus in. See also

chart No. 13.

5.2.30.5 India AS’ Disclosure requirements not applicable

The not applicability of India AS which was 27.58% due because those AS requirements

either not applicable by banking companies or the banking companies didn’t have

information to be disclosed in their respect only and it is not because the India AS are not

appropriated for India environment. See also chart No. 14.

246

Percentage of India AS application by India Banking Companies

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%A

S 1

Dis

clo

su

re o

f

Acco

un

tin

g

AS

2 V

alu

atio

n

of

Inve

nto

rie

s

AS

3 C

ash

Flo

w

Sta

tem

en

tsA

S 4

Co

ntin

ge

ncie

s

an

d E

ve

nts

AS

5 N

et

Pro

fit

or

Lo

ss f

or

the

Pe

rio

d,

Pri

or

AS

6

De

pre

cia

tio

n

Acco

un

tin

gA

S 7

Co

nstr

uctio

n

Co

ntr

acts

AS

9 R

eve

nu

e

Re

co

gn

itio

n

AS

10

Acco

un

tin

g f

or

Fix

ed

Asse

tsA

S 1

1 T

he

Eff

ects

of

Ch

an

ge

s in

AS

12

Acco

un

tin

g f

or

Go

ve

rnm

en

tA

S 1

3

Acco

un

tin

g f

or

Inve

stm

en

tsA

S 1

4

Acco

un

tin

g f

or

Am

alg

am

atio

ns

AS

15

Acco

un

tin

g f

or

Re

tire

me

nt

AS

16

Bo

rro

win

g

Co

sts

AS

17

Se

gm

en

t

Re

po

rtin

g

AS

18

Re

late

d

Pa

rty

Dis

clo

su

res

AS

19

Le

ase

s

AS

20

Ea

rnin

gs

Pe

r S

ha

re

As 2

1

Co

nso

lid

ate

d

Fin

an

cia

lA

S 2

2

Acco

un

tin

g f

or

Ta

xe

s o

nA

S 2

3

Acco

un

tin

g f

or

Inve

stm

en

ts in

AS

24

Dis

co

ntin

uin

g

Op

era

tio

ns

AS

25

In

teri

m

Fin

an

cia

l

Re

po

rtin

gA

S 2

6

Inta

ng

ible

Asse

tsA

S 2

7 F

ina

ncia

l

Re

po

rtin

g o

f

Inte

rests

in

AS

28

Imp

air

me

nt

of

Asse

tsA

S 2

9

Pro

vis

ion

s,

Co

ntin

ge

nt

Applied

Partly Applied

Not Applied

No Information

Not Applicable

Chart No. (9)

247

Percentage of Applied India AS'Disclosure requirements by India Banking Companies

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

AS

1

Dis

clo

su

re o

f

Acco

un

tin

g

AS

2 V

alu

atio

n

of

Inve

nto

rie

s

AS

3 C

ash

Flo

w

Sta

tem

en

tsA

S 4

Co

ntin

ge

ncie

s

an

d E

ve

nts

AS

5 N

et

Pro

fit

or

Lo

ss f

or

the

Pe

rio

d,

Pri

or

AS

6

De

pre

cia

tio

n

Acco

un

tin

gA

S 7

Co

nstr

uctio

n

Co

ntr

acts

AS

9 R

eve

nu

e

Re

co

gn

itio

n

AS

10

Acco

un

tin

g f

or

Fix

ed

Asse

tsA

S 1

1 T

he

Eff

ects

of

Ch

an

ge

s in

AS

12

Acco

un

tin

g f

or

Go

ve

rnm

en

tA

S 1

3

Acco

un

tin

g f

or

Inve

stm

en

tsA

S 1

4

Acco

un

tin

g f

or

Am

alg

am

atio

ns

AS

15

Acco

un

tin

g f

or

Re

tire

me

nt

AS

16

Bo

rro

win

g

Co

sts

AS

17

Se

gm

en

t

Re

po

rtin

g

AS

18

Re

late

d

Pa

rty

Dis

clo

su

res

AS

19

Le

ase

s

AS

20

Ea

rnin

gs

Pe

r S

ha

re

As 2

1

Co

nso

lida

ted

Fin

an

cia

lA

S 2

2

Acco

un

tin

g f

or

Ta

xe

s o

nA

S 2

3

Acco

un

tin

g f

or

Inve

stm

en

ts in

AS

24

Dis

co

ntin

uin

g

Op

era

tio

ns

AS

25

In

teri

m

Fin

an

cia

l

Re

po

rtin

gA

S 2

6

Inta

ng

ible

Asse

tsA

S 2

7 F

ina

ncia

l

Re

po

rtin

g o

f

Inte

rests

in

AS

28

Imp

air

me

nt

of

Asse

tsA

S 2

9

Pro

vis

ion

s,

Co

ntin

ge

nt

Applied

Chart No. (10)

248

Percentage of Partly applied India AS'Disclosure requirements by India Banking Companies

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

0.55

0.6

0.65

0.7

0.75

0.8

0.85

0.9

0.95

1

AS

1

Dis

clo

su

re o

f

Acco

un

tin

g

AS

2 V

alu

atio

n

of

Inve

nto

rie

s

AS

3 C

ash

Flo

w

Sta

tem

en

tsA

S 4

Co

ntin

ge

ncie

s

an

d E

ve

nts

AS

5 N

et

Pro

fit

or

Lo

ss f

or

the

Pe

rio

d,

Pri

or

AS

6

De

pre

cia

tio

n

Acco

un

tin

gA

S 7

Co

nstr

uctio

n

Co

ntr

acts

AS

9 R

eve

nu

e

Re

co

gn

itio

n

AS

10

Acco

un

tin

g f

or

Fix

ed

Asse

tsA

S 1

1 T

he

Eff

ects

of

Ch

an

ge

s in

AS

12

Acco

un

tin

g f

or

Go

ve

rnm

en

tA

S 1

3

Acco

un

tin

g f

or

Inve

stm

en

tsA

S 1

4

Acco

un

tin

g f

or

Am

alg

am

atio

ns

AS

15

Acco

un

tin

g f

or

Re

tire

me

nt

AS

16

Bo

rro

win

g

Co

sts

AS

17

Se

gm

en

t

Re

po

rtin

g

AS

18

Re

late

d

Pa

rty

Dis

clo

su

res

AS

19

Le

ase

s

AS

20

Ea

rnin

gs

Pe

r S

ha

re

As 2

1

Co

nso

lida

ted

Fin

an

cia

lA

S 2

2

Acco

un

tin

g f

or

Ta

xe

s o

nA

S 2

3

Acco

un

tin

g f

or

Inve

stm

en

ts in

AS

24

Dis

co

ntin

uin

g

Op

era

tio

ns

AS

25

In

teri

m

Fin

an

cia

l

Re

po

rtin

gA

S 2

6

Inta

ng

ible

Asse

tsA

S 2

7 F

ina

ncia

l

Re

po

rtin

g o

f

Inte

rests

in

AS

28

Imp

air

me

nt

of

Asse

tsA

S 2

9

Pro

vis

ion

s,

Co

ntin

ge

nt

Partly Applied

Chart No. (11)

249

Percentage of Not applied India AS'Disclosure requirements by India Banking Companies

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

0.55

0.6

0.65

0.7

0.75

0.8

0.85

0.9

0.95

1

AS

1

Dis

clo

su

re o

f

Acco

un

tin

g

AS

2 V

alu

atio

n

of

Inve

nto

rie

s

AS

3 C

ash

Flo

w

Sta

tem

en

tsA

S 4

Co

ntin

ge

ncie

s

an

d E

ve

nts

AS

5 N

et

Pro

fit

or

Lo

ss f

or

the

Pe

rio

d,

Pri

or

AS

6

De

pre

cia

tio

n

Acco

un

tin

gA

S 7

Co

nstr

uctio

n

Co

ntr

acts

AS

9 R

eve

nu

e

Re

co

gn

itio

n

AS

10

Acco

un

tin

g f

or

Fix

ed

Asse

tsA

S 1

1 T

he

Eff

ects

of

Ch

an

ge

s in

AS

12

Acco

un

tin

g f

or

Go

ve

rnm

en

tA

S 1

3

Acco

un

tin

g f

or

Inve

stm

en

tsA

S 1

4

Acco

un

tin

g f

or

Am

alg

am

atio

ns

AS

15

Acco

un

tin

g f

or

Re

tire

me

nt

AS

16

Bo

rro

win

g

Co

sts

AS

17

Se

gm

en

t

Re

po

rtin

g

AS

18

Re

late

d

Pa

rty

Dis

clo

su

res

AS

19

Le

ase

s

AS

20

Ea

rnin

gs

Pe

r S

ha

re

As 2

1

Co

nso

lida

ted

Fin

an

cia

lA

S 2

2

Acco

un

tin

g f

or

Ta

xe

s o

nA

S 2

3

Acco

un

tin

g f

or

Inve

stm

en

ts in

AS

24

Dis

co

ntin

uin

g

Op

era

tio

ns

AS

25

In

teri

m

Fin

an

cia

l

Re

po

rtin

gA

S 2

6

Inta

ng

ible

Asse

tsA

S 2

7 F

ina

ncia

l

Re

po

rtin

g o

f

Inte

rests

in

AS

28

Imp

air

me

nt

of

Asse

tsA

S 2

9

Pro

vis

ion

s,

Co

ntin

ge

nt

Not Applied

Chart No. (12)

250

Percentage of No Information India AS'Disclosure requirements by India Banking Companies

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

0.55

0.6

0.65

0.7

0.75

0.8

0.85

0.9

0.95

1

AS

1

Dis

clo

su

re o

f

Acco

un

tin

g

AS

2 V

alu

atio

n

of

Inve

nto

rie

s

AS

3 C

ash

Flo

w

Sta

tem

en

tsA

S 4

Co

ntin

ge

ncie

s

an

d E

ve

nts

AS

5 N

et

Pro

fit

or

Lo

ss f

or

the

Pe

rio

d,

Pri

or

AS

6

De

pre

cia

tio

n

Acco

un

tin

gA

S 7

Co

nstr

uctio

n

Co

ntr

acts

AS

9 R

eve

nu

e

Re

co

gn

itio

n

AS

10

Acco

un

tin

g f

or

Fix

ed

Asse

tsA

S 1

1 T

he

Eff

ects

of

Ch

an

ge

s in

AS

12

Acco

un

tin

g f

or

Go

ve

rnm

en

tA

S 1

3

Acco

un

tin

g f

or

Inve

stm

en

tsA

S 1

4

Acco

un

tin

g f

or

Am

alg

am

atio

ns

AS

15

Acco

un

tin

g f

or

Re

tire

me

nt

AS

16

Bo

rro

win

g

Co

sts

AS

17

Se

gm

en

t

Re

po

rtin

g

AS

18

Re

late

d

Pa

rty

Dis

clo

su

res

AS

19

Le

ase

s

AS

20

Ea

rnin

gs

Pe

r S

ha

re

As 2

1

Co

nso

lida

ted

Fin

an

cia

lA

S 2

2

Acco

un

tin

g f

or

Ta

xe

s o

nA

S 2

3

Acco

un

tin

g f

or

Inve

stm

en

ts in

AS

24

Dis

co

ntin

uin

g

Op

era

tio

ns

AS

25

In

teri

m

Fin

an

cia

l

Re

po

rtin

gA

S 2

6

Inta

ng

ible

Asse

tsA

S 2

7 F

ina

ncia

l

Re

po

rtin

g o

f

Inte

rests

in

AS

28

Imp

air

me

nt

of

Asse

tsA

S 2

9

Pro

vis

ion

s,

Co

ntin

ge

nt

No Information

Chart No. (13)

251

Percentage of Not applicable India AS'Disclosure requirements by India Banking Companies

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

0.55

0.6

0.65

0.7

0.75

0.8

0.85

0.9

0.95

1

AS

1

Dis

clo

su

re o

f

Acco

un

tin

g

AS

2 V

alu

atio

n

of

Inve

nto

rie

s

AS

3 C

ash

Flo

w

Sta

tem

en

tsA

S 4

Co

ntin

ge

ncie

s

an

d E

ve

nts

AS

5 N

et

Pro

fit

or

Lo

ss f

or

the

Pe

rio

d,

Pri

or

AS

6

De

pre

cia

tio

n

Acco

un

tin

gA

S 7

Co

nstr

uctio

n

Co

ntr

acts

AS

9 R

eve

nu

e

Re

co

gn

itio

n

AS

10

Acco

un

tin

g f

or

Fix

ed

Asse

tsA

S 1

1 T

he

Eff

ects

of

Ch

an

ge

s in

AS

12

Acco

un

tin

g f

or

Go

ve

rnm

en

tA

S 1

3

Acco

un

tin

g f

or

Inve

stm

en

tsA

S 1

4

Acco

un

tin

g f

or

Am

alg

am

atio

ns

AS

15

Acco

un

tin

g f

or

Re

tire

me

nt

AS

16

Bo

rro

win

g

Co

sts

AS

17

Se

gm

en

t

Re

po

rtin

g

AS

18

Re

late

d

Pa

rty

Dis

clo

su

res

AS

19

Le

ase

s

AS

20

Ea

rnin

gs

Pe

r S

ha

re

As 2

1

Co

nso

lid

ate

d

Fin

an

cia

lA

S 2

2

Acco

un

tin

g f

or

Ta

xe

s o

nA

S 2

3

Acco

un

tin

g f

or

Inve

stm

en

ts in

AS

24

Dis

co

ntin

uin

g

Op

era

tio

ns

AS

25

In

teri

m

Fin

an

cia

l

Re

po

rtin

gA

S 2

6

Inta

ng

ible

Asse

tsA

S 2

7 F

ina

ncia

l

Re

po

rtin

g o

f

Inte

rests

in

AS

28

Imp

air

me

nt

of

Asse

tsA

S 2

9

Pro

vis

ion

s,

Co

ntin

ge

nt

Not Applicable

Chart No. (14)

252

Application of India AS' disclosure requirements by banking

companies of india

50.26%

1.48%10.34%

10.34%

27.58%

Applied

Partly Applied

Not Applied

No Information

Not Applicable

Chart No. (15)

253

5.3 Comparison between IAS applications in Yemen and India AS application in

India

Table (70) Comparison between IAS application percentages in Yemen and India

AS application percentage in India


Applie

d

Not

Applied

No

Informat

ion

Not

Applicable

International Accounting

Standards (IAS)

28.7% 2.54

%

6.8% 8.63% 53.33%

India Accounting Standards

(AS)

50.26% 1.48

%

10.34% 10.34% 27.58%

Differences -

21.56%

1.06

%

-3.54% -1.71% 25.75%

5.3.1 Applied

If we compare the applied accounting standards in both countries we will find that

India has applied accounting standards more than Yemen by 21.56% which indicate

the development of India accounting practices and weaknesses of accounting practices

in Yemen.

5.3.2 Partly applied

In this respect I have found the misapplication in Yemen more by 1.06% which

indicates the practices weaknesses of accounting in Yemen than India.

5.3.3 Not applied

In case of India even they are more by 3.54% than Yemen but this due to the conflict

that I have observe between India AS and instructions issued by Reserve bank of

India which the banking companies given the most consideration to their instructions.

But in case of Yemen indicate the freedom of accounting practices in Yemen due to

the absent and weaknesses of professional accounting authority and Yemen law in the

field of accounting.

5.3.4 No information

This result which in India more than Yemen by 1.71% also approved the first

hypothesis of this study that (A full disclosure of accounting policies led to a realistic

and fair assessment of financial statements) as no information of some requirements

means more confuse for the financial statements’ users.

254

5.3.5 Not applicable

In case of Yemen the not applicability of accounting standards was the highest

percentage as it was 53.33% which I have explained the reasons previously, the mean

reasons due to the inapplicability of many international accounting standards in

Yemen. But in case of India I have explained before that it due because of some

requirements are not applicable by banking companies and the percentage was only

27.58%. So the difference between Yemen and India is 25.75%. See also Chart No.

(16)

255

Comparison between India AS & IAS Application by banking companies

28.70%

2.54%

6.80%

8.63%

53.33%

50.26%

1.48%

10.34% 10.34%

27.58%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Applied Partly Applied Not Applied No Information Not Applicable

International Accounting Standards (IAS)

India Accounting Standards (AS)

Chart No. (16)

256

5.4 Test of hypothesis

From the above analyses and discussions I have tested these study hypotheses which

are as following:

5.4.1 Approved hypothesis

Approved the first hypothesis of this study that (A full disclosure of accounting

policies led to a realistic and fair assessment of financial statements) which I have

noted through this study in the financial statements of India banking companies more

than Yemen banking companies as they disclosed more information about their

financial statements for their users which led the users trust their financial position

more than the Yemen banking companies who gives less disclosure. This what I

realized in this study which also clear from the extend of banking operation in India

than Yemen.

5.4.2 Unapproved hypothesis

I came to unapproved the second hypothesis of this study that (International

Accounting Standards are appropriate fore both countries Yemen and India) as in case

of India because they have their own accounting standards which consider their

environment they applied more than Yemen who applied IAS in which there are many

conflict with their environment which make the application of some IAS not

applicable.

chapter v analyses of data and test of the...

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