Proposed Mechanism for Reporting on Voluntary Services Provided in the Financial Statements of Local Government Units in the Iraqi Environment

Abstract

A voluntary service is an activity in which time is freely given to another person, group or issue. It is part of a set of positive behaviors to help others that result in greater commitment than spontaneous assistance such as caring for family and friends. Self-esteem, social communication, educational and professional achievement, functional capacity, and the potential for young people to engage in behavior problems such as school absenteeism and drug abuse.The research problem comes through the lack of accounting disclosure in the local environment about the voluntary services provided by civil society with the inability to measure these activities because there is no accounting mechanism to measure and disclose voluntary services. The research aims to propose accounting mechanisms for the development of accounting procedures upon receipt of voluntary services In the local government units in the Iraqi environment, and the research was based on the hypothesis that the adaptation of the proposed detailed accounting mechanism for voluntary services will improve the financial reports in the local government units . The researcher concluded that the absence of local accounting procedures for voluntary services leads to a failure to meet the requirements of local financial reporting due to the absence of standard procedures based on the accountant for the preparation of financial statements. The researcher reached a number of recommendations, the most important of which is the need for an accounting standard or accounting basis Including mechanisms for calculating the value of voluntary work, for their importance in standardizing accounting procedures and preparing financial statements that comply with the requirements of the international financial reporting.