The Reality of Applying a Standard (IFRS 13) and its Reflection on Accounting Earnings Quality under Financial Crisis/ Applied Study on a Sample of Banks Listed in Iraq Stock Exchange
Keywords:
IFRS 13, Accounting Earnings Quality, Financial CrisisAbstract
The research aims to show the reality of applying a standard (IFRS 13) and its reflection on accounting earnings quality under financial crisis. The research community was bank sector, and research samples was 16 banks. Independent variable (Standard IFRS 13) was measured by two ways: first, the significance of the fair value based net income, second, the significance of the fair value based comprehensive income). While accounting earnings quality was measured by Kothari's Model, the financial crisis measured as dummy variable, considering the years 2020 and 2021 represented by the financial crisis as a result of the covid-19. The research concluded there is positive relationship between the fair value according to a standard (IFRS 13) and accounting earnings quality, and that relationship increase in light of the Covid-19 crisis, that may be due to fair value lead to reduce the shock and increase the user confidence for financial information. Also, the research found there is an effect of the fair value standard (IFRS 13) on the earnings quality, the effect increase in 2020-2021 when crisis of Covid-19 occurred. Researcher recommendation, the necessity of increasing the user’s awareness of the financial reports in Iraqi banks for international financial reporting standards, including the (IFRS 13), because it is lead to increase adequate and presenting information to reflect the actual reality.
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