International Financial Reporting Standard 7 (IFRS 7) focuses on enabling users of financial reports to examine not only the usefulness of financial instruments for organizations but also the type and scale of the risks involved in employing financial instruments, as well as how firms manage risks. Therefore, this study aims to examine the extent of compliance with the requirements of IFRS 7 by Palestinian banks listed on the PEX vs. Jordanian banks listed on the Amman Stock Exchange during the period from 2014 to 2019. The study follows quantitative research methods, and the data are obtained from the annual reports of the banks. The researcher use an index that was developed to measure banks' compliance with this standard. The study results confirm that the mean of compliance with IFRS 7 requirements by Jordanian banks is 0.6466 compared to 0.6095 for Palestinian banks. Thus, there is a high level of compliance with this standard as banks are subjected to several laws and legislations to adopt IFRS7. Furthermore, there is a statistical difference in the extent of compliance with IFRS 7 requirements between Palestinian & Jordanian banks.
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