An evaluation of current status of associated party revelation of listed companies in bahrain

Abstract

This paper is primarily concerned to investigate current status of Associated Party Revelation (APR) of listed companies in Bahrain. The paper extends the previous literature in this field and provides evidence on the APR represented by IAS 24 appliance among these companies and examines relationship between three different Associated Party Revelation (APR)-sales, borrowing, and purchases-, and three different factors-sector, company size, and company profitability-. The empirical study is based on a sample of 49 companies, due to limitations it was minimized to 35 companies listed in Bahrain Bourse. Observations of annual reports and Excel were used to measure current status of APR among companies. A comprehensive appliance of IAS 24 was found in all companies, and most RPTs existence and APR are to borrowing RPTs, followed by sales RPTs and purchases RPTs, when all other factors are constant. However, there is a relationship between APR of considered classifications of RPTs and listed companies’ sectors, size, as opposite to none existence of a relationship between classifications of RPTs and listed companies’ profitability. In general, this issue in accounting needs further studies with larger sample size, broader classifications of RPTs, and additional factors.