“The Impact of Applying IFRS 10 by the Industrial Companies Listed on PEX on the Non-Controlling Interests Share of Excess رسالة ماجستير

Abstract

This research examines the effects of implementing IFRS 10—Consolidated Financial Statements—on the handling of non-controlling interests' (NCI) allocation of excess losses in industrial firms listed on the Palestine Exchange (PEX). This research evaluates the impact of IFRS 10's principle-based control model on the allocation of excess losses to non-controlling interests (NCI), particularly in emerging markets such as Palestine. The primary research inquiry is: In what manner does the implementation of IFRS 10 influence the financial reporting of non-controlling interests' share in excess losses? The study employs a quantitative methodology to analyze financial data from 11 industrial firms listed on PEX from 2019 to 2024. Statistical methods, such as descriptive analysis, independent t-tests, regression models, and ratio analysis, were utilized to assess variations in loss allocation between firms that implemented IFRS 10 and those that did not. The findings indicate no statistically significant difference in average consolidated profit or loss between companies that adopted IFRS 10 and those that did not. This suggests that the standard's impact may be more qualitative, enhancing transparency and clarity rather than directly affecting financial outcomes. Regression analysis indicated a marginally significant correlation between the VIII adoption of IFRS 10 and the share of NCI in excess losses. The research substantiates the hypothesis that although IFRS 10 enhances the financial reporting framework, its financial implications may become increasingly apparent over time. The findings highlight significant implications for auditors, regulators, and corporate leaders, particularly in developing markets. They underscore the necessity of institutional capacity and regulatory preparedness for the effective adoption of IFRS, especially in regions characterized by political and economic instability