Changes in Accounting Conservatism in Pre- and Post- IFRS Adoption in Jordan

Abstract

Studying the changes in accounting conservatism in Pre- and Post- IFRS adoption has received great attention by researchers recently. However, there is a lack of previous studies dealing with this subject for sufficient periods and in the banking sector specifically in Jordan. Therefore, the purpose of this study is to examine the relationship between the adoption of IFRS and the accounting conservatism and then measure the degree of change in the level of conservatism for the period 2000-2008 before applying the standards and 2009-2017after applying it.

After conducting appropriate statistical analysis and testing hypotheses, the results reveal an overall increase in conditional accounting conservatism during the study period and a higher increase following IFRS adoption. Also, the results provide evidence of significant differences in the level of accounting conservatism for the accounting earnings in pre- and post-adoption of IFRS.

Keywords: Conservatism, International Financial Reporting Standard (IFRS), Jordanian commercial banks.

DOI: 10.7176/RJFA/10-4-02