Journal of Banking and Finance Management Volume 2, Issue 1, 2019 PP 71-77 Journal of Banking and Finance Management V2 ● I1 ● 2019 71 The Level of Compliance with International Accounting Standard (IAS 24): Evidence from Bahrain Khalid Abdulla Mubarak Rashid 1 , Adel Mohammed Sarea 2 1 MBA Program, Ahlia University of Bahrain, Manama, Kingdom of Bahrain 2 Accounting and Economics Department, Ahlia University of Bahrain, Manama, Kingdom of Bahrain *Corresponding Author: Adel Mohammed Sarea, Accounting and Economics Department, Ahlia University of Bahrain, Manama, Kingdom of Bahrain, Adelsarea@hotmail.com INTRODUCTION AND LITERATURE REVIEW The standard of IAS 24 is known as the standard of Related Part Disclosures. The most important disclosures are the ones that draw attention toward more effective income statements and balance sheets that have been affected by the existence of different transactions such as commitments, outstanding balances (Munjanja, 2008). IAS 24 is to provide vital information and data regarding entity’s outstanding balances and different transactions related with several parties involved. This standard is related with different individuals and their respective disclosures such as directors’ compensation and outstanding balances (KPMG, 2015). The scope of this standard is to understand the related parties’ disclosures, transactions, outstanding balances, any special commitments related with the entity. The disclosure includes the short term and post employee benefit, termination, share based benefits and other any long-term important benefit transactions. International accounting standards 24 (IAS 24) initially came out in 1984 in order to elaborate the problems caused by RPTs. It became effective for the very first time on January 1st of 1986. The early stage of the IAS 24 development was the Exposure Draft E25 issued by IASC in March 1983, it started working on January 1st of 1986 and was adopted by IASB in 2001. The purpose of the accounting standards that govern how to present the RPTs, is to reflect the change occurred in the financial position due to the related parties transactions (Elhelaly, 2014). The RPTs in many of the East Asian nations brought many reforms. These reforms include the accounting standards for RPTs (IAS 24), to strengthen the market regulations of capital market and procedure of approvals on RPTs and developed plans for providing guidelines of best practices of RPTs (Mohamad and Hashim, 2013). However, IASB released an updated exposure drafts in December 2008 to propose the amendment in the IAS 24 regarding the relationship with the state. The main purpose of this ED was to simplify the requirement of disclosure which is applied to those enmities which are jointly controlled significantly affected by state or controlled IAS 24 before the current version regarding IAS 24 it was exempted the partly disclosure. These requirements were creating damages to the understandability and the usefulness of the financial statement of a state. These new amendments would be especially important for the government business enterprises (BDO, 2009). ABSTRACT This paper aims to assess the level of compliance with IAS 24 (Related Party Disclosures) in Bahraini listed firms. A survey used to collect the data, the ninth dimensions of the survey, which include (General requirements, transactions with control relationship parent, transactions with joint control, transactions with subsidiaries, transactions with associates, transactions with joint venture, transactions with management personnel, transactions with government related entities, understanding IAS 24) were tested. The main results indicated the level compliance with IAS 24 is 76% in Bahraini listed firms. The results of this paper can benefit all related party disclosures. This paper recommends for future research to use different methods to collect the data as well as this paper also contributes towards a better understanding of the accounting practices and standards in order to help the regulatory body in Bahrain to increase the level of compliance of the disclosure requirements of IAS 24. Keywords: Disclosure Requirements, Related Party Disclosures, IAS 24, Bahrain Bourse