The impact of applying IFRS on reducing investment risk-Case Study on the Jerusalem Real Estate Investment Company

Abstract

The subject of the study is one of the important topics that occupied accounting thought. A controversy has been raised in the recent period about investment risks in light of the globalization of capital markets and the need to adhere to the application of international financial reporting standards to attract foreign investment.This study aims to know the impact of the application of international financial reporting standards on reducing investment risks by analyzing the relationship between the application of international financial reporting standards and investment risks.This study was conducted on the Jerusalem Real Estate Investment Company during the period from 2015to 2017, and the researchers relied on the descriptive analytical approach, and a comprehensive survey was made of all the financial statements of the company and took all the data from 2015to 2017.The main results indicate that Bait Al-Maqdis Real Estate Investment Company has other investment alternatives available to pay off its debts in the short term, as it was found that Bait Al-Maqdis Real Estate Investment Company will not fail financially in the short term at least because of its ability to restructure its external debt, even on a short basis Term.The study recommended that the Jerusalem Real Estate Investment Company must provide sufficient liquidity to cover short-term obligations.