From IFRS 18 Readiness to Financial Data Quality: The Mediating Role of Accounting Disclosure Quality
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This study examines the readiness of Jordanian companies listed on the stock exchange to adopt International Financial Reporting Standard (IFRS) 18 and how this standard affects the quality of financial data in light of the adjusting effect of accounting disclosure quality. The research is based on Stakeholder Theory, Legitimacy Theory, and Silent Stakeholder Theory, which justify the importance of organizational preparation and disclosure behavior in determining the usefulness and credibility of financial reporting. A descriptive-analytical research design was employed; a structured questionnaire was administered to auditors, financial managers, and accountants working in companies listed on the Amman Stock Exchange. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze data of 284 valid responses. The findings indicate that the company's preparedness for IFRS 18 does not directly affect financial data quality but has a considerable positive effect on accounting disclosure quality, thereby improving financial data quality. The quality of accounting disclosures fully mediated this relationship. The research suggests reinforcing disclosure-oriented training, professional advice, and greater attention to disclosure quality to achieve successful implementation of IFRS 18 and improved financial reporting outcomes.
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