The Role of International Financial Reporting Standard (IFRS 16) in Reducing Accounting Information Asymmetry
Article Sidebar
THIS IS AN OPEN ACCESS ARTICLE UNDER THE CC BY LICENSE
Main Article Content
Abstract
This study aims to analyze the role of the International Financial Reporting Standard (IFRS 16) in reducing accounting information asymmetry related to lease contracts, by examining its contribution to improving the level of disclosure of right-of-use assets and associated lease liabilities, and enhancing the transparency of financial statements. This, in turn, assists top management, lenders, financial analysts, and regulatory bodies in obtaining a clearer view of the financial position of economic entities.
The study adopts a descriptive-analytical approach and is applied to Ur Company in Dhi Qar Governorate. For data collection purposes, a questionnaire was designed and distributed to a sample of employees working in the financial and accounting fields. A total of 150 questionnaires were distributed, of which 139 valid responses were retrieved for analysis. The Statistical Package for the Social Sciences (SPSS) was used to analyze the data and test the research hypotheses.
The study reached several conclusions, most notably that the application of IFRS 16 contributes to improving the measurement and recognition of lease contracts by incorporating right-of-use assets and related lease liabilities into financial statements. This has led to a reduction in accounting information asymmetry between management and external users. Furthermore, the results indicate a significant effect on enhancing the reliability and comparability of financial information, thereby supporting more rational decision-making by investors and lenders. Accordingly, the study recommends enhancing the commitment of economic entities to fully comply with the requirements of the standard, developing accounting information systems in line with lease disclosure requirements, providing specialized training programs for financial and accounting staff, and strengthening the role of regulatory bodies in monitoring compliance with international standards.
Downloads
Article Details
References
اولاً. المصادر العربية:
وحيد، عبدالله عبدالنبي، (2024). تأثير تطبيق منهج الحيود السداسي في جودة التدقيق الداخلي وانعكاسه على مستوى عدم تماثل المعلومات المحاسبية (رسالة ماجستير غير منشورة). جامعة القادسية، كلية الإدارة والاقتصاد، العراق.
الحضري، عمر يوسف عمر. (2019). ملخص معايير المحاسبة الدولية (International Accounting Standards). أكتوبر.
ثانياً. المصادر الأجنبية:
Białek-Jaworska, A., Dobroszek, J., & Szatkowska, P. (2022). Does the IFRS 16 affect the key ratios of listed companies? Evidence from Poland. International Journal of Management and Economics, 58(3), 299-315.
Han, W. (2023). Leases and the Conceptual Framework. Academic Journal of Business & Management, 5(26), 136-140.
Henderson, S., Peirson, G., Herbohn, K., & Howieson, B. (2017). Issues in financial accounting. Pearson Higher Education AU.
Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2020). Intermediate accounting: IFRS (4th ed.). Wiley.
Liberati, C. (2020). IFRS 16: The impact of lease accounting on the GEDI Group performance (Master’s thesis, LUISS – Libera Università Internazionale degli Studi Sociali Guido Carli).
Matos, N. B., & Niyama, J. K. (2018). IFRS 16-Leases: Challenges, Perspectives and Implications in the Light of Substance Over Form.
Morozova, T. V., & Tarasova, O. N. (2023). Research the Impact of the IFRS 16 requirements on the company’s financial performance. In E3S Web of Conferences (Vol. 449, p. 01005). EDP Sciences.
Sultan, J. (2021). The real effect of IFRS 16 Leases (Master’s thesis in Accountancy, Auditing and Controlling). Supervisor: S. Renes; Second assessor: W. Cao.
Ayman Saber Sayed Ali, A. (2024). The IFRS adoption and its influence on accounting information asymmetry and earnings quality: Evidence from the Egyptian Exchange. Academic Journal of Business & Environmental Studies, 15(4), 2080–2118
Wijaya, J. R. T., & Herwiyanti, E. (2023). A study of information asymmetry in financial research. The Indonesian Accounting Review, 13(1), 79-89.