Financial Disclosure in Accordance with International Accounting Standards and its Role in Enhancing the Level of Transparency in the Financial Statements - An Applied Study in A Sample of Iraqi Investment Companies Listed on the Iraq Stock Exchange

Abstract

The research aims to know the role played by the international accounting standards in enhancing the level of disclosure and transparency in the lists and financial reports prepared by the Iraqi investment companies through conducting an applied study on a sample of Iraqi investment companies listed in the Iraqi Stock Exchange for the period 2013-2017. In order to achieve this objective, the method of content analysis (0,1) was used to extract the size and ratio of the application of international accounting standards by investment companies, as well as a comparative analysis of the financial elements disclosed in the financial statements of the investment companies with the financial elements that require disclosure in the financial statements according to international standards. The research concluded that, there is a positive relationship between the presentation of the financial statements in accordance with the international accounting standards and the increased level of disclosure and transparency in these reports, as well as the absence of a clear mechanism by the investment companies to make appropriate changes in order to submit financial statements and reports related to their activities in accordance with the International Accounting Standards. The most important recommendation of the research to the management of Iraqi investment companies is the need to adopt a clear policy that undertakes the provision of accounting information in accordance with international accounting standards, in addition to provide more information on the financial elements of the ongoing changes.