Accounting for Financial Investments in View of International and Local Financial Reporting Standards

Abstract

The transformations in the business environment and the opening of markets have led to increased interest in financial investments to revive the national economy and with the emergence of international business and multinational companies, accounting work has become more extensive and complex, which requires improving local accounting standards and in line with international requirements, where the research problem is that Iraq is one of the countries It seeks to use accounting that is largely consistent with the international financial reporting standards through its keenness to apply the unified accounting system and accounting rules and that studying financial investments in the light of both international financial reporting standards and Iraqi accounting regulations and knowing and identifying similarities and differences between them can improve the process of increasing Harmony and increased compatibility Where the importance of research lies in improving the unified accounting system and the Iraqi accounting rules through which financial investments are accounted for and shown in financial statements and communicated to users of financial reports in a way that reflects on the enhancement of investment decisions, and with this the aim of the research is to identify financial investments in the light of each of the reporting criteria International and local financial and accounting treatments in addition to conducting a comparative analytical study to find out the similarities and differences between them and proposing the necessary basis and procedures to help increase harmony and consensus, as the two researchers used the theoretical side and the comparative analytical method based on the sources and references as well as the international and local financial reporting standards related to the research topic Also, tables and illustrations were used, many results were reached, the most important of which is a wide gap between international and domestic financial reporting standards in relation to accounting for financial investments. Financial statements, and among the recommendations of the researchers is the necessity to issue a separate accounting rule for financial investments and another rule for investments in real estate, as well as an accounting base for investment in associates and joint ventures in order to classify financial investments according to what came in the international financial reporting standards.