Using a qualitative research design, this study examined the inventory valuation conflict between financial managers and auditors and its implications for the International Accounting Standard 2 (IAS 2). This study found that the conflict arose due to the lack of precise instructions in the IAS 2 regarding cost–unit calculations. It was recommended that the IAS 2 should provide more examples or use the chamber of commerce as a source of information to clarify what should be considered as the product cost of storage expenses. This study supported previous findings that job order costing was used for customized manufacturing, while process costing was used for standardizing manufacturing. It also highlighted the importance of process costing in evaluating equivalent units and normal and abnormal losses in production, which affect inventory value. This study concluded that cost techniques should be viewed as managerial tools for calculating the cost of a unit. Cost managers should use their expertise to develop the cost formula for their specific industry while maintaining confidentiality. This study contributed to the literature by highlighting the importance of process costing in evaluating inventory valuation and resolving conflicts between financial managers and auditors. It also provided practical implications for improving the treatment of inventory in the IAS 2. This included directing the implementation of stable policies and attaching some indices when computing equivalent units, abnormal losses, and product costs. This study’s limitations included the use of a small sample size, and future studies should consider larger sample sizes from different industries and countries.

Acceptance and implementation of international financial reporting standards ensure a wider scope for financial transparency, accountability, and comparability on a global scale. Against this backdrop, this study looks at the implications of these standards on Hungary’s financial transparency by evaluating panel data from 716 private companies over the period 2013–2023. The Hausman test results suggest that Fixed and Random Effects models should be used.The analysis indicates that, on average, the sampled companies have improved financial transparency by 75%. Key determinants include standard adoption (0.025 coefficient, t = 8.333, p < 0.001), cost of implementation (2.400 coefficient, t = 24.000, p < 0.001), investor confidence (0.035 coefficient, t = 11.667, p < 0.001), and legislative changes (2.450 coefficient, t = 24.500, p < 0.001). Moreover, it is possible to obtain significant positive effects on the centered variables for implementation costs (coefficient = 2.498, p < 0.001) and government efficiency (coefficient = 0.036, p < 0.001).These results demonstrate a positive effect, which is significantly created by adopting these standards on financial transparency. They underline increased investor confidence and government efficiency as drivers of these improvements. Applying these standards in Hungary’s financial reporting system is classified as a strategic tool to foster economic stability and attract foreign investment, which ensures Hungary’s good standing in the global economy.

Purpose This study examines the impact of board characteristics (i.e., board independence, board size, number of board meetings, foreign directors, and representation of females on the board of directors) on the tone disclosed in the banks’ annual reports of the Jordanian banking industry. Design/methodology/approach The sample of this study contains all banks in the Jordanian banking industry for the period 2010–2019. This study employs a quantitative research method to examine the impact of the board of directors' characteristics on the tone of disclosure. Although disclosure tone is qualitative information, it has been converted into numbers (the frequency of positive and negative words) using the NVivo program. The "tone" is measured in this study based on lists of positive and negative words developed by Loughran and McDonald’s list. Then, a pooled regression analysis is used to investigate whether the board of directors' characteristics affect the disclosure tone. Findings The study results show that corporate governance plays a significant role in disclosing tone in banks’ annual reports. Clearly, the results show that the number of board meetings positively impacts the emergence of tone disclosure. In addition, the presence of women on the board of directors positively impacts the tone disclosure. In contrast, the foreign directors’ existence on the board of directors has a negative effect on the tone disclosure. However, the results show no relationship between board independence, size, and tone disclosure. Originality/value This study contributes by providing knowledge and insights into tone disclosure in an emerging market. Based on signaling theory, tone disclosures are the mangers’ signals given to the stakeholders in their firms’ financial reports. Managers disclosing positive tones to convey good news to their stockholders, and this considered as one of the main targets for these managers. This study provides insights into the relatively under-researched area of disclosure tone in an emerging market. It sheds light critically on how board of directors’ characteristics within the banking industry in Jordan contributes to their disclosure tone in the annual reports. This contribution helps stakeholders including policymakers, CEOs, and capital market participants understand how board members’ characteristics can contribute in building a straightforward disclosure tone in their financial reports. The study's conclusions are particularly significant because they attest to the need for financial knowledge and diversity of gender. The tone disclosure presented in financial reports, along with its anticipated impact on future investor decisions, is a crucial aspect for stakeholders to comprehend. Practical implications Our findings suggest that banks in Jordan should carefully consider the characteristics of their boards of directors, as these are crucial to ensuring transparency in disclosures. Additionally, maintaining a consistent and clear tone in annual reports is vital, as it significantly influences investor confidence and interest. This transparency can be strengthened by the quality and effectiveness of the bank's directors. Recommendations/future research For future research, the current study results can be reinvestigated to other emerging countries, other sectors, other measures for the disclosure tone and the board of directors’ characteristics, and more important different periods to include the effects of COVID-19 pandemic and financial crisis.

Type of the article: Research ArticleAbstract The emergence of Islamic finance has positioned Sukuk as a moral substitute for traditional bonds. However, misalignment with International Financial Reporting Standard 9, especially in Jordan, erodes investor confidence and reduces integration into world markets. This paper attempts to quantitatively evaluate how classification difficulties under International Financial Reporting Standard 9 affect investment strategies, decision-making, and market attractiveness of Sukuk within Jordan’s financial system.Data were collected from a stratified sample of 346 finance professionals from banks, investment businesses, insurance companies, and regulatory authorities. Each participant had at least three years of work experience and suitable academic credentials. Utilizing partial least squares structural equation modeling, the survey was carried out between September 2024 and January 2025. The results indicate that classification issues have a significant adverse effect, reducing investment strategy efficacy by 46% (β = –0.46, p < 0.01), decision-making clarity by 37% (β = –0.37, p < 0.05), and Sukuk attractiveness by 52% (β = –0.52, p < 0.001). These significant effects are reinforced by vigorous diagnostics of the model, with variance inflation factor measures between 1.15 and 1.23, and by superb fit indices of the model, such as a standardized root mean square residual of 0.06 and a comparative fit index of 0.95.The results underline the need for a coordinated international classification system and the structural influence of regulatory inconsistencies on Sukuk viability. Promoting openness, restoring investor confidence, and enabling wider acceptance in foreign markets all depend on aligning Islamic financial instruments with global reporting standards.

A historical exploration of Islamic Accounting Standards is presented in this paper. The fundamental players’ roles in the emergence and expansion of Islamic accounting standards are also identified. To collect data, documents were examined and key players that are involved in the development of Islamic Accounting Standards were interviewed. It has been determined that the Dubai International Finance Centre (DIFC) primarily sets Islamic Accounting Standards in the UAE. Since the reporting standards and backgrounds of accountants may have global effects beyond their jurisdictions, this study suggests accounting standards setters with differences in the ideological and religious backgrounds should communicate with one another in an era of globalization.

Type of the article: Research ArticleAbstractMunicipal waste-to-energy is often assessed through technical efficiency, energy output, or regulatory compliance. Yet, these indicators do not show whether plants create positive social welfare after operating costs and environmental damages are monetized. This study examines how operational performance, emissions intensity, and stricter environmental valuation shape the net social benefit of German municipal waste-to-energy plants from 2017 to 2023. Germany serves as a benchmark case because its mature waste-to-energy sector, European emissions regulation, and public environmental and energy-market reporting enable transparent public-record welfare assessment. The study constructs a plant-year analytical dataset for 70 facilities from publicly accessible administrative, environmental, market, and technical records, with net social benefit treated as a constructed welfare-accounting measure based on observed records, documented public proxies, and explicit valuation assumptions. It uses plant- and year-fixed-effects models, valuation sensitivity tests, and an optimization-based decision-support layer. The descriptive evidence shows substantial welfare heterogeneity, with a mean traceable-baseline net social benefit of 17.9 euros per metric ton under the central valuation case and lower mean welfare under higher shadow prices. The fixed-effects results do not provide statistical support for the hypothesized operational drivers in the public-data panel: energy recovery, emissions intensity, availability, oxygen instability, and the interaction between emissions intensity and the shadow price index are not statistically significant. The study contributes by integrating cost accounting, externality valuation, and operational performance into a transparent public-record welfare metric for policy appraisal.