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

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. Findings – 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. <br/

Do not-for-profits need their own conceptual framework?

This paper raises the issue of whether not-for-profit (NFP) organisations require a conceptual framework that acknowledges their mission imperative and enables them to discharge their broader accountability. Relying on publicly available documentation and literature, it suggests that current conceptaul Frameworks for the for-profit and public sectors are inadequate in meeting the accountability needs of broader NFP-specific accountability and the formulation of NFP-appropriate reporting practice, including the provision of financial and non-financial reporting. The paper thus theoretically challenges existing financial reporting arrangements and investes debate on their future direction

The use of performance-based remuneration: High versus low-growth firms

This study analyses the CEO remuneration structure and level for 100 Australian-listed entities. Consistent with expectations, it finds that high-growth firms pay their CEOs a greater proportion of performance-based pay, when equity-based rewards only are considered. High-growth firms also place greater reliance on market and/or non-financial performance standards for the award of performance-based pay. The extent to which performance-based remuneration is used as a component of CEO pay is positively associated with firm size and growth options. Other potential determinants of performance-based pay, such as financial performance, are not significantly associated with the use of performance-based remuneration