The Impact of the Development the International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) on the Tax Legislation in the Jordan

Abstract

This study is to highlight the impact of the developing the International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) on the Tax Legislation in the Jordan

This study found that there is a statistical evidence of the IFRS on the tax legislations, with the presence of some weak impact from the point of view of the study sample related to the fair value and the extent of its use in the investments, assets, and the financial instruments. And there is no impact with statistical evidence of the external auditing standards on the tax legislations, with the presence of some difficulties related to the evaluations and the future values which necessitate the external auditor to take them into consideration during the external audit.

The study recommended that is very important to understand the necessity of the awareness for external auditors with what's related to the importance of the most convenient planning and the importance of analytical revision in external auditing activities with what corresponds with the goals on which external auditing has been used in order to achieve harmony between IFRS and tax legislations. The necessity of awareness for accountants and external auditors with the importance of the fair value and its impact on financial data and information through showing the financial data risks that are related to the application of the fair value and its impact on reporting financial reports and the accounting acknowledgement of financial data. The study also recommended to Increasing the coordination and collaboration between the legal association of accountants and the income and sales tax department for the purposes of standing on all the obstacles that occur without the acceptance of all the certified accounts from external auditors in the patrol and without auditing from the ISTD.

Key Words: IFRS, ISA, ISTD, JORDAN