APPLYING THE EXPECTED CREDIT LOSS MODEL UNDER IFRS 9 ON ISLAMIC SUKUK: EMPIRICAL EVIDENCE FROM JORDAN PUBLICLY TRADED COMPANIES

This paper explores the possibility of applying the expected credit loss model, which has been introduced by the IFRS 9, on Islamic Sukuk by the listed firms in Jordan. Employing the methodology of semi-structured interviews in the Arabic language with Ten Islamic accounting experts (Islamic accounting professors, Islamic banks financial managers and shariah scholars) from Jordan. This problem makes the Islamic Sukuk investment not tempting to Jordanian listed firms and that lead to reduce the firms' portfolio diversification and constrain the Sukuk market growing. Accordingly, obtaining solutions to the mentioned problem will increase the willingness to invest in Islamic Sukuk and advance its market in Jordan. The article concluded that the listed firms in Jordan can apply the expected credit loss model on Sukuk investment, and that supports the Malaysian argument about the discount rates used in the impairment. However, companies should use other prevailed factor than the interest rate if available to apply the Impairment. Additionally; the expected credit loss model is applicable only on the debtbased Sukuk since they are non-tradeable under Islamic finance rules and they are measured by amortized cost method as conventional bonds.