Financial Reporting Regime & Financial Statements Antecedents Banking Sector Case of Pakistan

The current study hypothesized the significant correlation of financial reporting regime with financial statements ingredients. Study used connivance sampling technique for data acquisition have employed separate and combined descriptive test, Hosmer & Lemeshow test and binary logistic test for interpretation. Thus, the study revealed its significant correlation with historic investigations. While, more systematic work is required because of time, resources and potential constraints limited findings are concluded.


INTRODUCTION
Financial statements are key items used for record keeping, budgeting and financial decision making. While, financial statements are scheduled under financial reporting standards (Iqbal, Nasir & Iqbal, 2015). Thus, international financial reporting standards (IFRS) are developed. And such standards are planned and executed mainly by American Accounting standard board (AASB) and international accounting standard board (IASB). In Pakistan these standards were adopted by few years ago.
And mainly global financial crises has increased accountability concerns of industries i-e banking sectors because of increasing liquidity risk in corporate financial sector . And in this crisis there was lack of fair value representation (Khan, 2009: Yahya, Yousaf andDania, 2015). Thus, to cover the gap the current study is working on financial reporting regime and financial statements determinates.
Before 1947 sub continent was under supremacy of Great Britain. And after came into being as Pakistan there was serious lack of rules of accounting. And then various rules were adopted of general accepted accounting principles (GAAP) and then after some decades International financial reporting standards (IFRS) are being adopted. So to measure such integration a facet as financial reporting regime is used where both GAAP and IFRS are used measured by dummy variables to analyses its correlation with financial statements facets.
Thus, the current study is exploratory and contextual will reveal key findings for theorists, accounting practitioners, accounting standard makers and for accounting scholars. Moreover, the study tried to cover the gap regarding financial reporting up to its best.
So the scheme of the study is that part (01) explains introduction, part (02) clarifies methodology, hypothesis, measurement instruments and sample of the study. Part (03) interprets the study results, part (04) concludes the study findings and part (05) reports new directions.

RESEARCH METHODOLOGY
The current study is exploratory in nature and explores the impact of corporate financial reporting regime on corporate determinants i-e growth, firm size, leverage, profitability, liquidity, assets tangibility and age. And it is hypothesized that there is significant correlation of reporting regime on financial statements determinants.
In above econometric model G represents growth, FS represents firm size, LEV represents leverage, P represents profitability, LIQ represents liquidity, AT represents assets tangibility and AGE represents the age of the bank. And y represents the financial reporting regime. Thus, to measure such econometric model in statistical way the measurement models of the variables are as follows,   Thus, the standard deviation values of IFRS as compare to GAAP are found higher. Therefore, growth has 0.39, profitability has 0.32, liquidity has 1.09, leverage has 1.10, age has 0.77, assets tangibility has 0.46, firm size has 0.91 higher change respectively.  The table 06 explains the results of binary logistic regression where the beta value of growth is 25.76, profitability 12.48, liquidity 0.57, leverage 0.77, age 7.51, assets tangibility 6.77 and firm size 12.88 and the distribution function is 01. Moreover, growth is found significant at 0.02 (p<0.05), profitability is found significant at 0.048 (p<0.05), liquidity is found insignificant at 0.18 (p<0.05), leverage is found insignificant at 0.24, age is found significant at 0.01 (p<0.05), assets tangibility is found significant 0.039 (p<0.05) and firm size is found significant at 0.000 (p<0.05) respectively.

CONCLUSION
The study concluded financial statements ingredients significant with reporting regime. But from facets of financial statements leverage is found insignificant. It is because of variants nature of industries, decision oriented minds and financial structures. Thus, other facets i-e profitability, growth, fair value of firm size and assets tangibility are found significant. Hence, the study has concluded its results up to historic investigations. So the managers have to focus such ingredients before planning and executing financial concerns.

FUTURE DIRECTIONS
1) Future research could be conducted in similar in any other context and it can be investigated by comparing such findings among cross economies comparatively.

International Letters of Social and Humanistic Sciences Vol. 59
2) Another research can be investigated by incorporating industrial demographics in recent model. 3) A study would reveal more clear findings by analyzing moderating role of managerial expuoser, decisions of financial managers and emotional behavior between reporting regime and financial statements facets. 4) Such all can be investigated by analyzing reporting regime impact separately on financial statements i-e income statements, share holders equity statement, balance sheet statements, cash flow statement and consolidated financial statements.