The Application of International Accounting Standard No. (39)” Recognition and Measurement of Financial Instruments “by Jordanian Financial Institutions

Abstract

This study aims at investigating the extent to which Jordanian financial institutions apply IAS NO.(39) “Recognition and Measurement of Financial Instruments”. In order to achieve the objectives of the study, a questionnaire has been designed to collect the data. The questionnaire was distributed to the accountants working in (78) Jordanian financial institutions. The results indicate a partial application of the IAS No. (39) by Jordanian financial institutions. The study also revealed that the Banking Sector achieved a (79.03%) application rate and the insurance sector achieved the lowest rate (58.45%). Based on the results, recommended that Jordanian financial institutions should pay more attention to the standard as it helps investors and legislators in evaluating it is companies’ investments in financial instruments and they should try to conduct training sessions for accountants dealing with IAS No.(39) .