Academy of Strategic Management Journal Volume 19, Issue 1, 2020 1939-6104-19-1-496 1 IMPACT OF THE APPLICATION OF IFRS 9 STANDARDS ON THE PROFITS AND LOSSES OF INSURANCE COMPANIES LISTED ON THE AMMAN STOCK EXCHANGE Ola Mohammad Khersiat, Zarqa University Riham Fathi ALkabbji, Zarqa University ABSTRACT This study aims to identify the effect of applying the standard IFRS9 “Financial Instruments” standard on the profits and losses of insurance companies. Insurance companies in Jordan have started applying this standard as of 1/1/2018. The two researchers explored the effect of this standard through receivables on the profits and losses. Tax assets, bank deposits, financial assets at amortized cost and loans holders of life insurance and of life insurance and checks on the collection “Account Receivable: Reinsurers`”. Results show that there is a statistically significant impact for the application of the standard IFRS 9 standard on profits and losses of insurance companies, and that the independent variables have been impacted to varying degrees. By using the factor analysis, variables have been classified from the most influential on the profit and losses of the insurance companies to the least influential, while the most affected and influential of these variables were bank deposits. It has been also found that the FAAC, TA ranked second, and LHLT, PR third in terms of influence. The study mainly recommends that IFRS 9 standard should be applied to address some of the difficulties experienced by insurance companies when processing financial instruments and derivatives, as well as to present financial lists that conform to users of accounting information. Keywords: IFRS9, Insurance Company, Profits, Losses. INTRODUCTION On the impact of the fallout of the global financial crisis on the recent economic environment and business environment, efforts have been successfully rewarded by changes in international accounting standards and international financial reporting in addition to changes in generally accepted accounting principles. This was achieved due to the significant impact of these changes on mitigating challenges, difficulties and criticisms directed to applying some accounting standards, including the International Accounting Standard No. 39 due to the difficulties encountered by the users of accounting information regarding its application. As a result, efforts have been made by the Financial Accounting Standards Board FASB, the International Accounting Standards IASB, the Consultative Group for Financial Crisis FCAG to issue the Standard of Financial Reporting, No. IFRS9 in November 2009, till the full application stage in 2010, provided that standards be applied in January 2018, despite the fact that the Board allowed the early application of the standard in 2015. This standard has basically concentrated on setting the principles related to reporting financial assets and financial liabilities which will display the information characterized by its relevance and utility for users of accounting information, in order to increase the quality of financial reports (Barth et al., 2008; Huian, 2013;