The development of accounting standards to comply with the environment factors always necessitates the appearance of certain alternative principles , which results in a lack of an agreement on specific principles . Accordingly , accouting comparability becomes so difficult and the lack of a true and fair view in the conventional financial statements is not a remote likelihood .
Due to the above dilemma , this study tries to establish the real situation of accounting standards in Yemen , which requires an empirical survey of the standards prevailing in the accounting realm in Yemen . It should be born in mind that there is no official and documented set of accountig standards in Yemen .
However the empirical survey indicates clearly that there is an increasing influence of International Accounting Standards (IASs), a phenomenon repuered close examination since it may drive accounting in Yemen in a different situation from that should be dictated by Yemen's environmental factors .
Therefore , one of the main purposes of this thesis is to determine the determine the extent to which accountants in Yemen use IASs . Another major purpose is to evaluate the relevance of IASs to the Yemen's environment .
To accomplish the empirical survey , a questionnaire was designed and distributed to a sample consisting of financial managers , the auditors , the auditors of the Central Organization for Control and Accounting , and certified public accountants . Another empirical approach is a survey and analysis of financial statements issued by corporation working in certain major sectors during period from 1991 to 1996.
The general structure of the thesis consists of seven chapters . The first is developed to discussing and analyzing previous studies , the methodology adopted , and the nature and structure of the sample employed in empirical survey . The second chapter is concerned with the theoretical background of standards environment and applying them globally . The third chapter gives an overview of accounting profession in the UK,US, France ,Germany and developing countries .
The fourth chapter encompasses critical and analytical approach to Yemeni political and socioeconomic environment , and the nature of the accounting profession in Yemen . The fifth chapter studies IASs,s prevalence in Yemen . However studying IASs within the framework of Yemeni accounting legislation and their affects on financial repotting in Yemen will almost give a complete picture , a necessary step for the structure of chapter six , which contains the results of the questionnaire , comparison of the results generated by the questionnaire survey with an analysis of financial statements , and evaluation of the IASs,s applicability in Yemen . Chapter seven , the last chapter , evaluates conclusions regarding Yemeni situation in the light of previous studies . It also includes conclusions and recommendations in general .