The Effect of Applying International Financial Reporting Standards (IFRS) on the Level of Accounting Information Asymmetry in Iraqi Private Banks

Abstract :

The research examines the relationship between the implementation of International Financial Reporting Standards (IFRS) and the level of accounting information asymmetry. Changes and developments have taken place in different fields over recent decades, especially technological, communication and information systems. This has increased users’ demand for accounting information to support good managerial decisions at all levels. The problem facing accounting information systems today is not in generating information but in providing sufficient, efficient, accurate, timely relevant and reliable information that enhances decisions on accounting profit and investment.

The main aim of this paper is to study the impact of adopting IFRS in reducing accounting information asymmetry among parties interacting in the Iraqi Stock Exchange. High-quality accounting information capable of significantly narrowing the information gap between different interacting parties’ high-quality accounting information capable of significantly narrowing the information gap and improving reported earnings, is expected under the application of IFRS.