The impact of determinants of compliance with international financial reporting standards (IFRS) on the appropriateness of the value of accounting information. An analytical study of a sample of commercial banks listed on the Iraqi stock exchange

Abstract

This study seeks to examine the extent to which a selected group of Iraqi banks adhere to the International Financial Reporting Standards (IFRS), which encompass the International Accounting Standards (IAS), as per the guidelines set by the Central Bank. Additionally, it aims to identify the key factors that influence the level of compliance. The investigation also sought to assess the appropriateness of the usefulness of accounting information. The study sample will assess the application of international financial reporting standards and evaluate the appropriateness of the value for compliance rates of Iraqi banks. The research sample comprised data collection from ten banks listed on the Iraqi Stock Exchange during a one-year period, (2012 to 2019). The IFRS Foundation's compliance examination index was used to assess and establish the level of conformity of the banks in the study sample with the standards throughout the specified application period. Three factors were selected to measure the magnitude of their influence on the rates of adherence to the IFRS standards. The determinants include bank size, profitability, and audit quality. This research utilized three financial models to conduct a thorough analysis and generate significant practical outcomes. The objective was to assess the appropriateness of the value both before and after the implementation of international financial reporting standards. Additionally, the research aimed to evaluate the compatibility of the value with the standards' compliance requirements. These objectives have been successfully achieved. By conducting tests on the research hypotheses, the majority of them were confirmed, leading to a set of conclusions. The most significant conclusion is that there is a noticeable discrepancy in the adherence to international financial reporting standards between the Iraqi banks in the research sample and the same banks during the examination period.