The Effect Of Adopting International Financial Reporting Standards On The Quality Of Financial Reports And Its Role In Improving The Value Of The Economic Unit- The Case Iraqi Commercial Banks

Abstract

This study investigates the impact of the quality of financial reports performed as a result of adopting international financial reporting standards in Iraqi commercial banks listed on the Iraq Stock Exchange. Thus, the paper looks at how the reports' quality affects the economic unit's ability to achieve its value. Four Iraqi banks were chosen at random as the research sample, and their financial records were compared between 2011 and 2015 and between 2016 and 2020 to show how they fared before and after the adoption. In particular, earnings quality equations are used in the study to examine the accuracy of financial reporting, and Q Tobin's equation is used to determine the economic unit's value. The result reveals a statistically significant positive correlation between the adoption of International Financial Reporting Standards and the quality of bank reports, and statistically significant inverse correlation between the former and the worth of economic units.