The Impact of the Implementation of International Financial Reporting Standard Number 16 in Improving the Quality of Accounting Information

Abstract

The objective of this study is to consider International Accounting Standard No. (16) Relating to Rental, and its impact on the quality of accounting information, particularly relevance and honest representation. There were difficulties in International Accounting Standard No. (17) in terms of non-accounting of operating lease as an asset and liability in the statement of financial position, which does not give a true picture of all the assets and liabilities of the company accurately.

The study used the analytical descriptive approach to achieve its objective. The study relied on the questionnaire method on the external auditors.

One of the major finding of the study is that most of the external auditors support the application of IFRS 16 as it meets their expectations and addresses the shortcomings of the old standard (IAS 17).

The study recommends the application of the IFRS 16 standard as it has significant benefits and importance in increasing the quality of accounting information, as well as overcoming the difficulties of using the new standard (IFRS 16) through holding conferences and issuing scientific journals to know how to use it optimally.

Key words: International Financial Reporting Standard (16).