The Role of International Accounting Standard 39 in Disclosing Financial Derivatives/ Financial Instruments in the Financial Statements of Jordanian Banks Listed on the Amman
DOI:
https://doi.org/10.31150/ajebm.v7i8.2897Keywords:
IAS, IFRS, Financial derivatives, forwards, swaps, CommodityAbstract
This study objective to know the nature of financial derivatives of both types (stocks and bonds) and the role of International Accounting Standard (39) in disclosing them in the financial statements, in addition to identifying their problems, how they are dealt with, and what is the mechanism for disclosing them in accordance with international accounting standards.
The study used the content analysis method to determine the volume of disclosure of financial derivatives in the financial statements of a number of Jordanian banks registered on the Amman Stock Exchange.
The descriptive analytical method was also used in the theoretical aspect
The study showed through the conclusions that the financial reports of Jordanian banks have dealings with financial instruments and that the banks have applied the standard, but only partially and in accordance with the standard (39 Financial Instruments: Recognition and Measurement), which led to a significant improvement in the measurement and disclosure of financial instruments (stocks and bonds). Thus, the auditor is able to give an impartial technical opinion
The study presented several recommendations, the most important of which are: the need to pay attention to applying Accounting Standard 39 completely and not partially for the purpose of being able to compete internationally and not just at the local level through developing and qualifying employees/and resorting to foreign companies specialized in the field of applying international accounting standards.
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