(2015), “”, ,  Vol.19, (Issue 1). (ISSN: 2356-8402).

Abstract:

The aim of this research is to find the relationship between disclosure in annual reports as outlined in the corporate governance regulations imposed by the Saudi Capital Market Authority and companies’ performance in Saudi Arabia. To achieve that, the corporate governance disclosure regulations are classified into four categories; Ownership structure and shareholders’ rights; board of directors’ information; financial information; operational information. Each category included several variables that are disclosed on the annual reports. This research is conducted on three sectors (Banking, Cement and Multi-Investment) to measure the relationship between those variables and company performance measured by three measures, namely Return on Assets (ROA), Return on Equity (ROE) and Price to Earnings ratio (PE). The results revealed that both ROE and ROA correlate with some of the disclosure variables. However, these variables differ from one sector to the other. Very few variables correlate with the PE ratio. The result confirms results achieved by previous studies conducted on the local and international level.

Abstract:

The following paper on Murabaha explores the challenges vis-à-vis the International Financial Reporting Standards (IFRS). Some aspects are first analyzed and then compared to specific IFRS, namely IAS 2 Inventories, IAS 23 Borrowing Costs, IAS 16 Property, Plant and Equipment, IAS 18 Revenue, IAS 40 Investment Property, and taxable income. Murabaha, a method of Islamic Financing with its fixed profit margin, offers the seller a more predictable income stream, however, it is also a controversial issue in the Islamic world of finance due to the sensitivity of the profit margin as opposed to interest. From IFRS’s point of view, there are controversies between IFRS and Murabaha applications. The paper tries to explain the controversies and proposed solutions to overcome the reporting differences between Murabaha applications and IFRS.

Abstract:

This paper aims to help companies to rationalize their investments in Computerized Accounting Information Systems (CAIS hereafter) through focusing on the experience of companies that have changed their systems. The paper opted for a survey research approach using a questionnaire which is tested for its content validity.  The questionnaire is designed to capture the experience of companies that have changed their CAIS. The questionnaires were distributed among both accountants and managers of Saudi Arabian companies of different sizes and fields that have experienced problems in their CAIS. The paper provides an insight of the reasons behind the decision to change CAIS based on the practical experience of companies in Saudi Arabia. It shows that there has been a significant change in the priorities of choosing a CAIS due to experience. It is noted also that there are some features which are available in CAIS which are not widely required by system users, and hence, it would be unwise to pay for their costs. Finally, it is noted that there is no significant difference between managers’ and accountants’ requirement regarding CAIS.