vol 17 no 3,2017

The Impact of Applying International Financial Reporting Standard (IFRS 9) on The Quality of The Accounting System Outcomes of The Insurance Companies in Jordan

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ABSTRACT:

The current study aimed to slight the light on the impact of applying IFRS No. 9 on the quality of the accounting system outputs, as an empirical study of the insurance companies in Jordan. This study is based on six components to measure the quality of the accounting system outputs, namely relevance, reliability, timeliness, comparability, symmetry, and measurability of accounting information.

The questionnaire was designed and distributed among employees who are working in finance departments and auditors of insurance companies in Jordan. They are 27 insurance companies which are listed in Amman Stock Exchange at the end of 2015. Seventy six questionnaires have been distributed, of which forty seven questionnaires have been collected which represented by 61.8%. The study is based on the Statistical Package for the Social Sciences (SPSS v.20) in order to test study data and reach conclusions on the results of this study hypotheses.

The results of the study confirm the existence of a statistical significant impact of the applying of IFRS (9) on the appropriateness of accounting information in the financial statements of insurance companies in Jordan, and no significant impact of the applying of IFRS (9) on reliability, timeliness, comparability, symmetry, and measurability of accounting information in the financial statements of insurance companies in Jordan. Finally, The study recommends a constant encouragement of insurance companies in Jordan to apply IFRS (9) and provide the necessary reliability needed of recording the financial transactions and provide the accounting and financial information in the proper time which will lead and support taking the strategic and important decisions from decision makersin Jordanian Insurance Companies.

Key Words: IFRS 9, Accounting System Outcomes, Accounting Information Quality, Insurance Companies, Jordan.

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