Ghassan H. Mardini

The impact of IFRS 8 on disclosure practices of Jordanian listed companies

Purpose – The purpose of this paper is to compare the segmental information disclosures of Jordanian companies under IFRS 8 for 2009 with disclosures under IAS 14R for 2008.Design/methodology/approach – A sample of 109 Jordanian companies is used in this research. A disclosure index checklist was constructed to assess the segmental information provided by the sample companies. In particular, the checklist collected information about: the number of segments reported; the number and type of segmental items published; the geographic segment definitions (areas) used; and the identity of the chief operating decision maker (CODM).Findings – The results suggest that segmental disclosures under IFRS 8 have increased compared to the information published under IAS 14R. There is an increase in the number of companies disclosing segmental information while the number of business and geographic segments for which information is provided rose under IFRS 8. Items required under the previous standard (IAS 14R) are still...

Determinants of segmental disclosures: evidence from the emerging capital market of Jordan

The primary objective of this paper is to examine the factors which affect the segmental disclosures (mandatory and voluntary) provided by Jordanian listed companies. In addition, the study documents evidence about the extent to which multi-activity companies comply with the requirements about segmental disclosure as mandated by IFRS 8. Based on an analysis of 67 companies’ annual reports for 2009, the level of segmental disclosure provided was partial; specifically, 60% of segmental items specified in the standard were typically supplied. The level of segmental disclosure tended to be significantly and positively influenced by company size, the audit firm engaged and company profitability. However, there was no evidence that a company’s industry, liquidity or leverage had any influence on the quantity of segmental disclosure provided.

Perceptions of external auditors, preparers and users of financial statements about the adoption of IFRS 8

Purpose - – The purpose of this paper is to explore the perceptions of external auditors, preparers and users (investors and analysts) of financial statements in Jordan about this new segmental reporting standard; a decision usefulness framework underpins the research. Design/methodology/approach - – The objective of this study is to explore the perceptions of external auditors, preparers and users (investors and analysts) of financial statements in Jordan about this new segmental reporting standard; a decision usefulness framework underpins the research. Findings - – The findings reveal that a majority of interviewees found that IFRS 8 was not a problematic standard, and that the management approach of IFRS 8 was an improvement on the previous standard – International Accounting Standard (IAS) 14R – because the information produced was seen as useful to users of financial statements. Moreover, the respondents indicated that there was an improvement in the quantity and quality of segmental information under IFRS 8 in annual reports for 2009; it was more understandable, relevant, reliable and comparable than the segmental information which had previously been reported. Research limitations/implications - – No attempt was made to assess the usefulness of segmental information reported under IFRS 8 by Jordanian listed companies in their annual reports for other groups such as lenders, suppliers, customers, trade creditors and the general public (IASC, 1989). Thus, a survey about the impact of IFRS 8 on other groups may yield further insights about the decision usefulness of the new standard’s disclosures. However, Jordanians are not familiar with such research instruments and the culture within the society is relatively secretive (Piro, 1998). Practical implications - – The findings of the current research should be valuable for international accounting standard setters at the International Accounting Standards Board. It provides some indication about the impact of this new standard. Originality/value - – This research shows that segmental information reported under IFRS 8 is more useful for decision makers needs compared to segmental information that previously reported under IAS 14R. It also provides a great insight about the impact of this new segmental disclosure standard.

Determinants of revenue recognition disclosures: the case of Jordanian industrial listed companies

The focus of this study is on the extent to which IAS 18 is applied by Jordanian industrial companies. Specifically, the objectives of this study are: 1) to investigate the extent of application of IAS 18 in selected Jordanian industrial companies listed on the Amman Stock Exchange (ASE); 2) to investigate the impact of certain corporate characteristics such as company size, profitability, liquidity, leverage, listed status and ownership on the application of IAS 18 among Jordanian industrial companies. To achieve these objectives, an index comprising of 15 items were employed to study disclosures by 40 industrial companies listed on the ASE. It was found that, on average, the companies published information on approximately 56% of the items included in the index; only 13 companies achieved high disclosure scores however. These results indicate that there is significant scope for additional disclosures under IAS 18 by Jordanian industrial companies listed on the ASE. The results also suggest that company size is significantly and positively associated with the application of IAS 18. The analysis also documents that liquidity as well as leverage are significantly and negatively associated with the application of IAS 18, while profitability is not significantly associated with the level of disclosures under IAS 18.

Factors affecting financial instruments disclosure in emerging economies: the case of Jordan

The current study investigates factors affecting financial instruments (FI) disclosure for a sample of Jordanian listed companies (82 firms) over two consecutive years (2013 and 2014). An un-weighted disclosure index is used to examine the extent of FI disclosure. In addition, the study employs a number of multiple regression models to examine the determinants of FI disclosure. The findings indicate that the level of FI disclosure provided by the sample firms is relatively low with only 52% of FI-related items being supplied. In addition, the results illustrate that the level of FI-related disclosure has a statistically positive association with firm size, the audit firm employed and corporate governance attributes. However, the current study fails to document significant associations between FI disclosure and firm industry or ownership structure variables. This research provides a number of insights for policy makers. First, the results of the current study could help the IASB when revisiting FI-related accounting standards to consider an emerging countrys perspective. In addition, it provides some insights to accounting regulators in Jordan about how Jordanian listed firms respond to IFRS 7 requirements.