Jordan
| Extent of IFRS application | Status | Additional Information |
|---|---|---|
| IFRS Standards are required for domestic public companies |
|
IFRS Standards are required for all listed companies and financial institutions. |
| IFRS Standards are permitted but not required for domestic public companies | ||
| IFRS Standards are required or permitted for listings by foreign companies |
|
Required. |
| The IFRS for SMEs Standard is required or permitted |
|
IFRS for SMEs has not been adopted. However, SMEs are permitted to use it. |
| The IFRS for SMEs Standard is under consideration |
|
Yes |
Organisation
Role of the organisation
Accounting requirements in Jordan are established by the legislative body, the National Assembly (Majlis al-Umma), and by regulations issued by regulatory bodies pursuant to the laws.
The JACPA provides advice to the government in the areas of accounting and auditing standards.
Website
Email contact
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Yes.
Support for IFRS Standards is stated in the Jordanian Companies Law.
Article No. 184 of the Companies Law requires that “A Public Shareholding Company shall organize its accounts and keep its registers and books in accordance with the recognized international accounting and auditing standards.”
Regulations issued by the Jordanian Securities Commission, the Central Bank of Jordan, and Jordanian Insurance Commission all require IFRS Standards for regulated companies under their jurisdiction.
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
Yes.
Support for IFRS Standards is stated in the Jordanian Companies Law.
Article No. 184 of the Companies Law requires that “A Public Shareholding Company shall organize its accounts and keep its registers and books in accordance with the recognized international accounting and auditing standards.”
Regulations issued by the Jordanian Securities Commission, the Central Bank of Jordan, and Jordanian Insurance Commission all require IFRS Standards for regulated companies under their jurisdiction.
What is the jurisdiction's status of adoption?
IFRS Standards are required for the financial statements of all companies whose securities are traded in a public market.
See except from the Jordanian Companies Law above. In addition, the Jordanian Securities Commission has adopted the Instructions of Issuing Companies Disclosure, Accounting and Auditing Standards regulation.
Article 14 of that regulation requires: “The international accounting standards issued by the Board of International Accounting Standards are hereby adopted whereby all the parties subject to the Commission’s monitoring shall prepare their financial statements consistently therewith.”
Regulations issued by the Central Bank of Jordan (for financial institutions) and by the Jordanian Insurance Commission (for insurance companies) require IFRS Standards for regulated companies under their jurisdiction.
Additional comments provided on the adoption status?
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
Not applicable.
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED?
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
No.
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
If yes, what are the changes?
The Jordanian Securities Commission, the Central Bank of Jordan, and the Jordanian Insurance Commission require the cost-depreciation-impairment model for all property, plant, and equipment, intangible assets, and investment property. The revaluation model in IAS 16 Property, Plant and Equipment and in IAS 38 Intangible Assets and the fair value through profit or loss model in IAS 40 Investment Property are not permitted.
The revaluation and fair value accounting policy options were eliminated in 2007 because active markets did not exist in Jordan for property and intangibles. Elimination of the options is regarded as temporary and may be cancelled if the regulators’ concerns are mitigated in the coming years.
