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

Lookup NU author(s): Professor Louise Crawford

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Abstract

© 2015 Emerald Group Publishing Limited. Purpose: Evidence from Jordan - 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.


Publication metadata

Author(s): Mardini GH, Crawford L, Power DM

Publication type: Article

Publication status: Published

Journal: Journal of Applied Accounting Research

Year: 2015

Volume: 16

Issue: 1

Pages: 2-27

Print publication date: 11/05/2015

Acceptance date: 01/01/1900

ISSN (print): 0967-5426

Publisher: Emerald Group Publishing Ltd.

URL: https://doi.org/10.1108/JAAR-09-2012-0066

DOI: 10.1108/JAAR-09-2012-0066


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