Purpose: This paper aims to study the impact of the adoption of International Financial Reporting Standards (IFRS) on Earnings Management (EM) by measuring the Discretionary Accruals (DAA) of firms listed in the materials sector in the Saudi Stock Exchange.

Design/methodology/approach: The Earnings Management (EM) level measured using Discretionary Accruals (DAA) calculated using the (Modified Jones (1995) Model). The study community consisted of 40 firms listed in the materials sector in the Saudi Stock Exchange, during the period 2014-2019. Binomial test and Two Related Samples Tests (Wilcoxon Test) used to test the study hypotheses and achieve the study aims.

Findings: There are presence indications of Earnings Management (EM) practices in firms listed on the Saudi Stock Exchange, there is a difference in Earnings Management (EM) practices due to adopt International Financial Reporting Standards (IFRS) for the preparation of the financial report, also decline in Earnings Management practices due to adopt International Financial Report Standards (IFRS).

Research limitations/implications: The study did not include the years 2020/2021 to avoid the effects of Covid 19.

Practical implications: The study results provide evidence of importance quality of business organization in the Saudi Stock Exchange  ،the necessity for regulators and supervisors (such as the Capital Market Authority) to exert great pressure on firms listed on the Saudi Stock Exchange to provide true and fair reports.

Originality/value: The study enriches the literature by covering the Saudi Stock Exchange, which is one of the largest emerging financial markets. This study also provides a picture of the impact of IFRS adopting on Earnings Management practices in the Saudi firms.