The extent to which the quality of earnings is available in the interim financial statements prepared in accordance with International Accounting Standard (34) for industrial sector companies listed on the Iraq Stock Exchange
DOI:
https://doi.org/10.31272/jae.i149.1444Keywords:
interim statements , International Accounting Standard (34) , quality of earningsAbstract
The current research aims to explain how the interim financial statements are prepared in the industrial sector in the Iraqi Stock Exchange, their conformity with the International Accounting Standard (34), and the extent to which the quality of gains is available in these lists. It focuses on the type of users of the financial statements, indicating that there may be manipulation in the interim lists. For the companies in the research sample, the management’s ability to use various accounting methods and procedures may make profits not truly reflect the company’s performance. The researcher adopted the model (Kothari et al. 2005) to measure the non-discretionary receivables of the companies in the research sample for the period (2019-2021). He also used the regression equation to estimate Model parameters to indicate the quality of earnings. The research concluded that the application of International Accounting Standard (34) was not accurate in the industrial companies of the research sample during the period, and the quality of earnings decreased in the interim financial statements of the companies of the research sample in general, and the researcher recommends publishing complete interim financial statements. Attached are adequate disclosures, containing all the information items needed by stakeholders associated with the company, and educating users of the interim financial statements on the importance of the quality of earnings
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