Development of Accounting Regulations and Practices in Kuwait: An Analytical Review

To provide an institutional insight into Kuwait’s current accounting practices and regulations and their potential for advancement, this study addresses a number of key institutional issues including economic and political influences, the legal system classification, and cultural settings. The study adopts an institutional approach in order to facilitate an understanding of the role institutional factors have played on accounting practices and regulations in Kuwait. Economic, political, and legal factors are found to be directly linked to specific features of the accounting system. Kuwaiti Parliament is a key player in the formation of all economic and political policies issued regarding business practices in general, and accounting ones in particular. The professions need to assert themselves and make sure that their voices are not lost in a sea of competing concerns regarding regulatory reform. Our analytical review brings together a diverse body of knowledge and attempts to understand accounting environment in Kuwait as a coherent hole. Such a holistic approach should facilitate a clear understanding of current practices and serve to guide future accounting regulatory reform. This study should be of interest to acade-micians, practitioners and regulators, who seek to develop accounting practices, disclosures and regulations.