Currently, all companies in Bahrain are required to prepare their financial statements in accordance with the International Financial Reporting Standards (Tait 2005, P. 222). By 1996 all listed companies in Bahrain were required to follow IAS (Al-Hussaini, Al-Shammari, Al-Sultan ,2008, P 51). The Bahrain Commercial Companies Law (BCCL) 2001 requires each registered entity to produce its balance sheet, profit and loss account and managers’ (directors’) report for every financial year, within three months from the end of the financial year, in compliance with the IFRSs (Tait 2005, P. 222). On June 17, 2007, a seminar about SME for IFRS was taken place in Bahrain. The purpose for the seminar was to update participants of the respected topics and identify their concerns (BDO, 2007).