The impact of mandatory IFRS adoption on conditional conservatism in Jordan
Other Title(s)
أثر التطبيق الإلزامي لمعايير الإبلاغ المالي الدولية على التحفظ المشروط في الأردن
Joint Authors
Arabiyat, Umar Shahir
Khamis, Bashir Ahmad
Source
Dirasat : Administrative Sciences
Issue
Vol. 43, Issue 1 (30 Jun. 2016), pp.275-286, 12 p.
Publisher
University of Jordan Deanship of Academic Research (DAR)
Publication Date
2016-06-30
Country of Publication
Jordan
No. of Pages
12
Main Subjects
Economics & Business Administration
Abstract EN
This study investigates the impact of the mandatory adoption of (IAS/IFRS) in Jordan on conditional conservatism.
Three measures of conditional conservatism are used: The modified Basu (1997) measure (Ball and Shivakumar, 2005), the (Khan and Watts, 2009) measure which takes into account a set of firm characteristics, and a measure controlling for the potential shifts in unconditional conservatism and cost of capital after the adoption of (IAS/ IFRS) (Andre, et al., 2013).
This study applies fundamental analysis on the Jordanian companies listed in Amman Bourse over the period 2002 to 2007.
Regression analysis was used to achieve the goals of the study.
The results reveal an overall decline in conditional conservatism over the three measures.
Moreover, the results reveal that the reduction in conditional conservatism after the adoption of (IAS/IFRS) is more significant for firms that report in their balance sheets; intangible assets, and the impairment of goodwill.
The researchers recommend applying the conditional conservatism principles in a way that help the Jordanian companies to reach the level of conservatism targeted by the IASB.
In addition, the researchers emphasize the importance of properly applying and enforcing the main mechanism that ensures the conditional conservatism, which is the impairment test.
American Psychological Association (APA)
Arabiyat, Umar Shahir& Khamis, Bashir Ahmad. 2016. The impact of mandatory IFRS adoption on conditional conservatism in Jordan. Dirasat : Administrative Sciences،Vol. 43, no. 1, pp.275-286.
https://search.emarefa.net/detail/BIM-818928
Modern Language Association (MLA)
Arabiyat, Umar Shahir& Khamis, Bashir Ahmad. The impact of mandatory IFRS adoption on conditional conservatism in Jordan. Dirasat : Administrative Sciences Vol. 43, no. 1 (2016), pp.275-286.
https://search.emarefa.net/detail/BIM-818928
American Medical Association (AMA)
Arabiyat, Umar Shahir& Khamis, Bashir Ahmad. The impact of mandatory IFRS adoption on conditional conservatism in Jordan. Dirasat : Administrative Sciences. 2016. Vol. 43, no. 1, pp.275-286.
https://search.emarefa.net/detail/BIM-818928
Data Type
Journal Articles
Language
English
Notes
Record ID
BIM-818928