Title:
THE EFFECT OF IFRS IMPLEMENTATION ON FINANCIAL REPORTING STANDARDS IN IRAQI ENTERPRISES

Authors:
Qassim Mahal Herez and Thar Saadoon Shnaishel, Iraq

Abstract:
This study examines the impact of IFRS implementation on financial reporting quality of Iraqi companies focusing on three pillars of such quality: 1) disclosure quality, 2) earnings management, and 3) value relevance. The importance of this study lies in the fact that as financial reports are more sensitive to regulatory constraints, the transparency and confidence by investors in publicly traded companies in Iraq is not to be overlooked. A quantitative approach has been decided with the help of panel data models. We analyzed simulated data from 30 listed Iraqi companies for the time period 2016 to 2025 in its first phase to get 300 firm-year observations. Results showed that IFRS adoption is positively related to improvement in financial reporting quality. It also improves the quality of disclosure, reduces earnings management practices and increases the relevance of value. Firm size, profitability, leverage, and audit quality also impact the adoption of reporting standards. According to the study, actual implementation of IFRS has the potential to improve the quality of the financial reporting in Iraq as long as strong adherence to regulation, external audit and professional development are followed by effective internal auditing.