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AAU Journal of Business and Law مجلة جامعة العين للأعمال والقانون

AAU Journal of Business and Law   مجلة جامعة العين للأعمال والقانون

Abstract

The study aims to evaluate the feasibility of applying IFRS 15 to improve the quality of accounting information. This improvement can be achieved via its relevance to investors’ decisions in the financial market and by testing two hypotheses. The first one shows the different ranges in Value-Relevance for revenue pre and post-application IFRS 15. The second attempts to know the difference in the management’s motives on the soothing revenue process pre and post the standard application. The quantitative analysis method uses the multiple regression analysis models for some companies in the Jordanian industrial sector. The study sample consists of 39 industrial companies registered in the Amman Stock Exchange for the first two periods from 2014-to 2016, while the second is from 2017 to 2019. The first period represents the period before the application of IFRS 15. In contrast, the second period represents the standard application period, whereas the second period represents the period of the standard application. The statistical analysis results indicate a decrease in the revenue response factor after the application of IFRS 15 and that its application did not undermine the management’s interventions in the practice of soothing revenue.

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