Measuring the depreciation of the fixed assets of petroleum licensing contracts according to the International Accounting Standard (IAS36) and its reflection on accounting disclosure in Iraq
DOI:
https://doi.org/10.31150/ajebm.v5i2.874Keywords:
depreciation of fixed assets, licensing contracts, international accounting standardsAbstract
The research aims to clarify the concept of depreciation of fixed assets, especially fixed assets, petroleum licensing contracts on the one hand, and the presentation and analysis of some accounting standards related to the depreciation of those assets on the other hand, as well as the application of the requirements of the international accounting standard (36) on a sample of extractive companies in Iraq. Despite the issuance of a number of accounting standards that deal with the recognition of losses resulting from the depreciation of fixed assets after subjecting them to specific tests, including the International Accounting Standard (36) “Depreciation of Assets”, the extractive companies, especially the research sample companies suffer from the problem of not applying the requirements of the standard International Accounting (36) Although the reality of the situation in these companies indicates that there are many external and internal indicators that indicate a decline in the value of their fixed assets. The study begins by investigating the problem of the possibility of recognizing the depreciation of the fixed assets of petroleum licensing contracts in extractive companies and reporting them in the financial statements.
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