The impact of IFRS 7 on the significance of Financial Instruments disclosure: evidence from Jordan

Yasean Tahat (Lead / Corresponding author), Theresa Dunne, Suzanne Fifield, David Power

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    Purpose – The main aim of this paper is to investigate Financial Instrument (FI) disclosures provided by Jordanian listed companies under IFRS 7 as compared to those supplied under IAS 30/32.
    Design/methodology/approach – A sample of 82 Jordanian listed companies is used in this monograph. A disclosure index checklist was constructed to measure FI information provided by the sample companies.
    – The study finds that a larger number of Jordanian listed companies provided a greater level of FI-related information after IFRS 7 was implemented. Specifically, the sample firms provided 47% of the disclosure index items after implementing IFRS 7 as compared to 30% under IAS 30/32. In addition, an analysis of FI disclosure by industry revealed that the highest level of disclosure was provided by firms in the banking sector. Moreover, the analysis of FI disclosure pre- and post- the implementation of IFRS 7 revealed specific aspects of usefulness. In particular, some components of FI disclosure (Balance Sheet and Fair Value) showed no significant differences within and across sectors post the implementation of IFRS 7 suggesting that the new standard may have enhanced the comparability of such information.
    Research Limitations/implications - The results of the current study have a number of implications for policy-makers. First, they provide a great deal of insight for the IASB about the relevance of its standards to countries outside the Western context. In addition, the findings provide valuable insights for policy-makers in Jordan who are concerned about the implications of mandatory disclosures.
    Originality/value – The analysis of FI disclosure in developing countries in general, and in Jordan in particular, has been overlooked by the extant literature and therefore this study is the first of its kind to examine this research issue for a sample of Jordanian firms.

    Original languageEnglish
    Pages (from-to)241-273
    Number of pages44
    JournalAccounting Research Journal
    Issue number3
    Publication statusPublished - 2016


    • Corporate Disclosure
    • Financial Instruments
    • IFRS 7
    • Jordan

    ASJC Scopus subject areas

    • General Business,Management and Accounting


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