Abstract
The study aims at identifying the impact of applying the International Financial Reporting Standard (IFRS15-revenue from contracts with customers) on accounting conservatism and the mediating role of net assets through a case study of the Orange Jordan Telecom Company by comparing conservatism according to the Basu (1997) model for the pre-application periods of the standard (2015–2017) and post-application periods of the standard (2018–2020).
Achieving the research objectives necessitates using the analytical-descriptive approach. To answer the research hypotheses, path analysis is used through the structural modeling program (Smart PLS). The findings demonstrate the impact of the standard (IFRS-15) on the accounting conservatism measured by the Basu (1997) model. The findings also show that applying the standard (IFRS-15) affects the net assets with no impact of the net assets on the accounting conservatism measured by the Basu (1997) model. Moreover, the results indicate that applying the standard (IFRS-15) has a mediating role in the impact of applying the standard (IFRS-15) on the accounting conservatism measured by the Basu (1997) model at Orange Jordan Telecom Company. The study recommends amending certain policies and contractual terms, developing accounting and technological systems, and the internal control structure to respond to the standard, and training and qualifying employees to understand the standard guidelines by decision-makers in the Jordan Telecom Company - Orange.
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Khresat, O., Hasan, M.M.A., Arawashdeh, A., Jaradat, S., AymanZereban (2023). The Impact of Applying the International Financial Reporting Standard “IFRS15 - Revenue from Contracts with Customers” on Accounting Conservatism and the Mediating Role of Net Assets: Acase Study of Jordan Telecom Company Orange. In: Alareeni, B.A.M., Elgedawy, I. (eds) Artificial Intelligence (AI) and Finance. Studies in Systems, Decision and Control, vol 488. Springer, Cham. https://doi.org/10.1007/978-3-031-39158-3_53
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