The Impact of Applying International Accounting and Financial Reporting Standards (Ifrss/Iass) on the Financial Performance of Iraqi Banks: an Applied Study on a Sample of Banks Listed on the Iraqi Stock Exchange

Abstract

The study aimed to determine the impact of implementing International Accounting and Financial Reporting Standards (IAFS) on the financial performance of Iraqi banks listed on the Iraq Stock Exchange for the period 2012-2021. To achieve this, the researchers analyzed the annual financial reports of twelve Iraqi joint-stock banks listed on the market and extracted the following study variables: return on assets, return on equity, return on liabilities, return on equity, implementation of IAFS, bank size, bank age, and leverage ratio. The study employed content analysis of the financial reports of Iraqi banks. The results showed that the four multiple regression models used were highly statistically significant, allowing for reliable prediction of the values of the dependent variables. The results also showed that the estimated variance inflation coefficient values for all independent variables were less than 5, indicating the absence of multicollinearity. The results also revealed a statistically significant negative relationship between the implementation of IAFS and the financial performance of Iraqi banks across variables and during the period. The study presented several recommendations, including the need for banks registered on the Iraq Stock Exchange to standardize the procedures and rules used in preparing financial statements, which would facilitate comparisons between banks' financial performance. Accounting researchers should also focus on research and studies that address international financial reporting standards and their impact, taking into account other variables, particularly the Iraqi business environment.