Towards the readiness of the Iraqi banking environment to implement the International Financial Reporting Standard IFRS 18: An Applied Study

The study examined the extent of readiness of Iraqi banks listed on the Iraq Stock Exchange to move to the application and implementation of IFRS 18 “Presentation and Disclosure in Financial Statements” to replace IAS 1 “Presentation in Financial Statements.” The study relied on financial statements for the period 2022-2024 for a sample of 24 Iraqi banks, with 72 observations, using statistical methods including multiple linear regression, correlation matrix, and unit root tests. The study was based on three standard models that represent the measurement of financial stability, transparency of information and disclosure, and the efficiency of financial reports.
The study reached several results, the most prominent of which is that financial stability in the Iraqi environment in light of the application of IFRS 18 is represented by a rate of 71.8% compared to IAS 1 at a rate of 14.2%, as well as achieving transparency of accounting information at a rate of 62.4% according to IFRS 18 compared to 29.8% with IAS 1, in addition to achieving efficiency. Financial reports for the Iraqi banking sector at a rate of 55.8% compared to 39.1%. The study recommends that the Central Bank of Iraqi banks be strengthened by issuing a guide that takes into account the specificity of Iraqi Islamic banks, while strengthening the role of professional qualification for accounting staff in understanding the application of IFRS standards in general, without being subject to the opinions and viewpoints of financial statement preparers.