Corporates’ monitoring costs of fair value disclosures in pre- versus post-IFRS7 era: Jordanian financial business evidence
AbstractThis study proposes a new auditing model that takes Fair Value Accounting (FVA) into account as a unique complexity and risk factor. It gives new empirical data on audit firm monitoring in Jordan over two periods: before and after the implementation of IFRS7 (pre- vs. post-IFRS7). The Ordina...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2234141 |
| _version_ | 1827320224526893056 |
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| author | Esraa Esam Alharasis Manal Alidarous Abeer F. Alkhwaldi Hossam Haddad Nidal Alramahi Husni K. Al-Shattarat |
| author_facet | Esraa Esam Alharasis Manal Alidarous Abeer F. Alkhwaldi Hossam Haddad Nidal Alramahi Husni K. Al-Shattarat |
| author_sort | Esraa Esam Alharasis |
| collection | DOAJ |
| description | AbstractThis study proposes a new auditing model that takes Fair Value Accounting (FVA) into account as a unique complexity and risk factor. It gives new empirical data on audit firm monitoring in Jordan over two periods: before and after the implementation of IFRS7 (pre- vs. post-IFRS7). The Ordinary Least Squares regression, which used 1470 firm-year observations from 2005 to 2018, reveals that post-IFRS7 positively impacts audit fees, whereas pre-IFRS7 has no effect. According to the change analysis, increasing Fair Value Disclosure (FVD) is the primary driver of rising audit expenses in the post-IFRS7 era (particularly for Level2 assets). An additional test using firms with and without FVDs corroborated these findings even more. The moderating influence of the presence of FVA on each pre-and post-IFRS7 and audit fees shows that the use of FVA is the primary cause of Jordan’s high audit fees during the mandated FVA period. This research is the first to present fresh empirical evidence on audit firms monitoring expenses before and after FVD regulations using a sample from Jordan. The study’s findings provide regulators with up-to-date practical information regarding adopting FVA. The outcomes help lawmakers monitor the audit profession and regulate FVA audit procedures. |
| first_indexed | 2024-03-07T14:19:38Z |
| format | Article |
| id | doaj.art-b04791a67abc4f49bdad7821951bbb50 |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-04-25T00:42:04Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-b04791a67abc4f49bdad7821951bbb502024-03-12T08:30:27ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110210.1080/23311975.2023.2234141Corporates’ monitoring costs of fair value disclosures in pre- versus post-IFRS7 era: Jordanian financial business evidenceEsraa Esam Alharasis0Manal Alidarous1Abeer F. Alkhwaldi2Hossam Haddad3Nidal Alramahi4Husni K. Al-Shattarat5International Accounting Standards, Department of Accounting, College of Business, Mutah University, Karak, JordanInternational Accounting Standards, Department of Accounting, College of Business, Taif University, Taif, Saudi ArabiaDepartment of Management Information Systems, College of Business, Mutah University, Karak, JordanDepartment of Accounting, Faculty of Economics and Business Administrative, Zarqa University, Zarqa, JordanDepartment of Accounting, Faculty of Economics and Business Administrative, Zarqa University, Zarqa, JordanDepartment of Accounting, Faculty of Economics and Business Administrative, Zarqa University, Zarqa, JordanAbstractThis study proposes a new auditing model that takes Fair Value Accounting (FVA) into account as a unique complexity and risk factor. It gives new empirical data on audit firm monitoring in Jordan over two periods: before and after the implementation of IFRS7 (pre- vs. post-IFRS7). The Ordinary Least Squares regression, which used 1470 firm-year observations from 2005 to 2018, reveals that post-IFRS7 positively impacts audit fees, whereas pre-IFRS7 has no effect. According to the change analysis, increasing Fair Value Disclosure (FVD) is the primary driver of rising audit expenses in the post-IFRS7 era (particularly for Level2 assets). An additional test using firms with and without FVDs corroborated these findings even more. The moderating influence of the presence of FVA on each pre-and post-IFRS7 and audit fees shows that the use of FVA is the primary cause of Jordan’s high audit fees during the mandated FVA period. This research is the first to present fresh empirical evidence on audit firms monitoring expenses before and after FVD regulations using a sample from Jordan. The study’s findings provide regulators with up-to-date practical information regarding adopting FVA. The outcomes help lawmakers monitor the audit profession and regulate FVA audit procedures.https://www.tandfonline.com/doi/10.1080/23311975.2023.2234141IFRS7audit feesfair value accountingJordandeveloping countries |
| spellingShingle | Esraa Esam Alharasis Manal Alidarous Abeer F. Alkhwaldi Hossam Haddad Nidal Alramahi Husni K. Al-Shattarat Corporates’ monitoring costs of fair value disclosures in pre- versus post-IFRS7 era: Jordanian financial business evidence Cogent Business & Management IFRS7 audit fees fair value accounting Jordan developing countries |
| title | Corporates’ monitoring costs of fair value disclosures in pre- versus post-IFRS7 era: Jordanian financial business evidence |
| title_full | Corporates’ monitoring costs of fair value disclosures in pre- versus post-IFRS7 era: Jordanian financial business evidence |
| title_fullStr | Corporates’ monitoring costs of fair value disclosures in pre- versus post-IFRS7 era: Jordanian financial business evidence |
| title_full_unstemmed | Corporates’ monitoring costs of fair value disclosures in pre- versus post-IFRS7 era: Jordanian financial business evidence |
| title_short | Corporates’ monitoring costs of fair value disclosures in pre- versus post-IFRS7 era: Jordanian financial business evidence |
| title_sort | corporates monitoring costs of fair value disclosures in pre versus post ifrs7 era jordanian financial business evidence |
| topic | IFRS7 audit fees fair value accounting Jordan developing countries |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2234141 |
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