Financial reporting environment in Jordan : the need for change

Abstract EN

The paper presents a brief picture of the most important features of the accounting environment in Jordan.

It also suggests some ways of improving the financial reporting process in the country.

The changing environment has extended the boundaries of accounting.

Accounting is moving rapidly now towards a consideration of social welfare objectives.

Accordingly, the purpose of accounting has been redefined as to provide information that is essential for the society to make rational economic decisions that enhance social welfare.

Although circumstances affecting the practices of accounting in Jordan have been changing considerably, the accounting profession in Jordan is still in the process of development.

To rectify this imbalance, the paper suggests the necessity for closer cooperation between the parties concerned, i.e.

Accountants Association, Auditors Society, Amman Financial Market management and accounting professors in the Jordanian universities to establish a better accounting system in Jordan.