The Impact of Creative Accounting on the State's General Budget

This study aims to examine the relationship between creative accounting and tax revenues and their implications for Iraq's general budget during the period from 2019 to 2023. The importance of this topic lies in highlighting the impact of creative accounting practices on the state's financial system, particularly in light of the economic conditions and financial challenges facing Iraq. This research also reflects a modern approach by applying the modified Jones and Jones model, which is considered an innovative tool for measuring creative accounting. Additionally, the study employs the effective tax rate to assess tax revenues, enhancing the accuracy of the extracted results.
The study sample consists of 53 companies listed on the Iraq Stock Exchange, where the financial data of these companies were analyzed to test the research hypotheses. The results showed that creative accounting has a direct adverse impact on the state's general budget, indicating that creative accounting practices can negatively affect the allocation of the state's financial resources.