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Disclosure Compliance Requirements of IAS 16: A Study on Pharmaceuticals Industry in Bangladesh


Md. Shariful Islam ACMA, Mohammad Moniruzzaman ACA

Purpose: The paper seeks to find out the extent of compliance requirements of one of the important IASs (IAS 16) in one of the emerging industry (pharmaceuticals industry) to determine the overall compliance requirements of IAS 16.

Methodology:  The paper uses a variety of archival data and interviews with key factors, including preparers and users of annual reports, members of the Securities and Exchange Commission, and members of the professional accounting bodies: ICAB and ICMAB, and the annual reports of the related companies.

Findings: In the study, it is found that different factors affect the compliance requirements. But the most important is the linkage to multinational companies. The local companies do not comply with all requirements. Another important finding is that most of the company though revalue assets do not disclose any information regarding important.

Practical Implications- The study is important to policy makers, academics, managers because this will provide them with sound basis to improve the financial reporting systems of pharmaceuticals industry.