Comparison of the stability and presentation of revenues during the application of IAS 18 and after the application of IFRS 15: Evidence from Jordanian services and industries sectors

This study aims to compare the stability and presentation of revenues under International Financial Reporting Standard (IFRS) 15 in two key Jordanian sectors, industry and services. The objective is to determine the impact of transitioning from IAS 18 to IFRS 15 on revenue reporting practices in these sectors. To achieve the research objective, the study analyzed the annual operating revenue of selected companies in the industrial and services sectors over the period from 2013 to 2020. This period covers both the pre-implementation phase under IAS 18 and the post-implementation phase under IFRS 15. Quantitative analysis was conducted to examine differences in revenue stability and presentation before and after the adoption of IFRS 15, with statistical tests applied to evaluate the significance of these changes. The results indicate a positive statistical significance in the stability and presentation of operating revenues in the services sector following the adoption of IFRS 15, suggesting improved consistency and clarity in revenue reporting. Moreover, IFRS 15 had a notable effect on the value of reported revenues in Jordanian services firms. In contrast, the industrial sector showed a negative statistical significance in revenue stability and presentation when comparing the periods under IAS 18 and IFRS 15, indicating potential challenges or inconsistencies in applying the new standard within this sector. The implementation of IFRS 15 has had varying impacts on revenue reporting across different sectors in Jordan. While the services sector benefited from increased revenue stability and clearer presentation, the industrial sector experienced a decline in reporting stability, highlighting sector-specific differences in adapting to the new standard. These findings have important implications for regulators, auditors, and financial statement preparers. The results suggest a need for tailored guidance and training for industrial sector entities to better align with IFRS 15 requirements. Additionally, policymakers may consider sector-specific support to facilitate smoother transitions when future accounting standards are introduced.