The Impact of Implementing International Financial Reporting Standard (IFRS) 16 on Enhancing the Quality of Accounting Information
Year: 2021
Type: article
Abstract: This study aims to examine International Financial Reporting Standard (IFRS) 16, related to leases, and its impact on the quality of accounting information, particularly regarding relevance and faithful representation. The previous standard, IAS 17, faced challenges, notably the failure to recognize operating leases as assets and liabilities on the balance sheet, which hindered an accurate depiction of a company's financial position. The introduction of IFRS 16 addresses these issues and is considered a positive step toward improving financial reporting by enhancing the quality of accounting information. A descriptive analytical approach was employed, utilizing a questionnaire distributed to external auditors. One important finding is that the majority of external auditors support the implementation of IFRS 16, as it aligns with their expectations and remedies the shortcomings of IAS 17. The study recommends adopting IFRS 16 to leverage its significant benefits in improving accounting quality. Additionally, it suggests overcoming challenges associated with the new standard through organized conferences and the publication of scientific journals to facilitate its effective adoption.
Authors: Abdelrahman Khattab, Mahmoud Nassar
Institutions: Applied Science Private University, Al Ain University
Language: Arabic
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4312585598