Iranian Journal of Trade Studies

Iranian Journal of Trade Studies

A Pathology of the Standardization Process for Eliminating Foreign Exchange Obligations in Iran: An Accounting and Financial Reporting Perspective

Document Type : Research Paper

Authors
Bahar Zakeri 1
mojgan Safa 2
Seyyed Abbas Borhani 1
1 Department of Accounting, Qo.C., Islamic Azad University, Qom, Iran
2 Department of Accounting, Qom Branch, Islamic Azad University, Qom, Iran.
10.22034/ijts.2025.2066089.4166
Abstract
In recent years, the Central Bank of Iran has adopted the policy of eliminating foreign exchange commitments as a measure to control and manage the country’s foreign currency resources. However, the absence of transparent accounting standards and institutional coherence in implementing this policy has created multiple challenges for exporting companies, auditors, and supervisory bodies. These challenges have led to reduced transparency, weakened comparability of financial reports, and diminished effectiveness of currency policies. Therefore, the purpose of this study is to diagnose the challenges and shortcomings of the standardization process of eliminating foreign exchange commitments in Iran. The study was conducted with a qualitative approach using thematic analysis. Data were collected through semi-structured interviews with 16 experts in accounting, auditing, and financial policymaking, selected using a snowball sampling method. The analysis was performed through open, axial, and selective coding. The findings indicate that the process of eliminating foreign exchange commitments faces five main themes: weak theoretical and regulatory framework, institutional inconsistencies and inter-organizational conflicts, inefficiencies in financial reporting, structural and operational challenges, and shortcomings in professional training and capacity building. Each theme is supported by axial and conceptual codes that reveal the root causes of inefficiency in standardization. The existence of serious gaps in accounting standards related to foreign exchange commitments, together with inter-sectoral conflicts, highlights the urgent need to reform the regulatory framework and develop specific standards in this field. A significant practical implication of this research is the necessity of designing a dedicated accounting standard for eliminating foreign exchange commitments. The findings further show that the absence of such a standard has led to inconsistent interpretations by companies and auditors. Therefore, the Auditing Organization and the Accounting Standards Board, in cooperation with the Central Bank, must develop a national standard that explicitly addresses foreign currency translation methods, timing of revenue recognition, and full disclosure of the repatriation of export proceeds.
Keywords
Currency Commitment
Standardization
Accounting
Financial Reporting

Subjects

 
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  • Receive Date 16 July 2025
  • Revise Date 01 September 2025
  • Accept Date 13 September 2025