FLUCTUATIONS OF STOCK PRICE AND REVENUE AFTER THE EARLY ADOPTION OF IFRS 15, “REVENUE FROM CONTRACTS WITH CUSTOMERS”

Abstract

The adoption of International Financial Reporting Standards (IFRS) around the world is gaining popularity and Jordan not being an exception.  This adoption brings about improvement in accountability and quality of accounting Information through a uniform set of standards for financial reporting.  The objective of this paper is to examine whether the early adoption of IFRS 15 that supersede the International Accounting Standards (IAS) 18 concerning revenue recognition has effected Jordanian companies revenue levels and the value of stock price or not.  The paper measures revenue and stock prices pre and post the IFRS 15 implementation.  Two hypotheses was developed and tested at five (5) percent level of significance.  The findings revealed that there is significance quantitative difference between the arithmetic means for both of revenue and stock price pre and post the standard application.  Further, the results of the study provided conclusive evidence that IFRS 15 have impacted on accountability and quality of information that reported in financial statement for Jordanian mining, construction and engineering companies.