Adopting US-GAAP Or IASB Accounting Standards By The Arab Countries

Abstract

This paper examines whether Arab countries have adopted the standards issued by the International Accounting Standards Board (lASB) or the US-GAAP.  The results of this study show that companies in the Arab world use different accounting rules and regulations for measurement, recognition, and disclosures of financial position and results of operation.  Consequently, comparability of the financial results of different companies in different countries in the Arab world is impaired.  We recommend adopting financial accounting standards issued by the IASB.  Our study shows that adopting IASB standards has a positive impact on the economic development of the Arab countries.