The effect of applying international accounting standards on

the economic institution

Accounting has been known since its emergence as the

only and sure source of information that mainly contributes to
rationalizing the decisions of its users, and this position has been
assumed thanks to the peculiarities and features of its
development, which was inherent to the development of peoples
and societies in a way that leads to satisfying their information
needs in its multiplicity and diversity.
And the need has increased with the passage of time to the
services of accountants who initially considered that what the
accumulated experience provides is sufficient to fulfill the
requirements of the profession, and therefore their efforts at that
time focused on controlling the practice according to what is
acceptable and accepted among the sects of accountants, and the
result of this situation was the lack of lists Finance that has often
been affected by the judgments and personal estimates of those
who prepare it to meet the needs of users, Especially after the
increased eagerness of these people to obtain information that
has features that can only be available if they are based in
preparing them on a scientific basis and a theoretical structure
that provides convincing logical justification for the accounting
practices used, and then the inability of principles and
customary rules to address these requirements had a
fundamental impact on Accounting research.
The importance of the accounting system is becoming greater
due to the information it provides for both local and
international decisions. Following the developments business
environment has known influenced by globalization and it
impact on economical transactions in which are taking on
international dimensions, the fact that imposes the placing of
accounting practices to the standards to ensure understanding
and interpreting that information in uniform manner, and so
emerged the International Accounting Standards and applied by
so many countries in the world.
And thanks to International Accounting Standards the firm must
provide financial
statements to meet the investors information needs in the
investment decisions, and achieve financial disclosure
objectives as well as access to the funding sources, especially
after the growing demands of financial markets to adopt
International Accounting Standards to strengthen customer’s
awareness and raising levels of transparency in transactions. The
firm must take into account the necessity of disclosure
requirements complies of the application of the International
Accounting Standards carrying burdens recorder at different
levels (information system, individual formation…). In order to
prepare information and makes it
available to the public.
Because of economic changes which taking place in Iraq at the
internal and
external levels, is seeking in recent years to adopt a financial
accounting system respecting international requirements, so as
to facilitate international transactions especially foreign
investors tasks, who find difficulty in adjusting and dealing with
information that Iraqi firms gives, and which was basically
prepared to respond to national planning and tax collection.
The practical study is an attempt to identify the most important
aspects to brought out
the implications of applying International Accounting Standards
on the firm in practice as soon as possible, through field survey
approach, basing on questionnaire and personnel interview in an
integrated manner in order to be knowledgeable about all
research straw aspects.