DETERMINANTS OF ACCOUNTING POLICIES WITHIN THE SCOPE OF ACCOUNTING AND REPORTING STANDARDS: AN APPLICATION IN THE IRAQI BANKING SECTORS

Abstract

This research was conducted to evaluate the accounting policies of the banks in the Iraqi banking system in terms of IFRS and IAS. Four different banks operating in Iraq were discussed within the scope of the research and the compliance of these banks' accounting policies and accounting systems with international financial reporting and accounting standards was examined. Afterward, the relationship between current international financial reporting and accounting standards and accounting policy in the Iraqi banking sector is discussed. In 2005, new legal regulations were enacted in Iraq, and with these regulations, efforts to comply with accounting standards began. In this context, the last revisions were completed in 2016. In order to examine the accounting policies and the accounting and reporting standards of four different banks operating in Iraq, a document review was made and analyzed on the accounting footnotes in the financial statements. In the research, accounting standards and policies in the financial statements covering the period of 2016-2021 were examined. The conclusion obtained as a result of the research is that the Iraqi banking system is compatible with the international system. However, it cannot be concluded that each bank is compatible. After the central bank's decision on this issue, all banks now have to adapt to the international system.