The Gap Between International Financial Reporting Standards (IFRS) and the Local Unified Accounting System (UAS) and Its Impact on Disclosure

Document Type : SI: MLFRM-2025

Authors

1 Technical College of Management Technical College of Management Middle Technical University, Baghdad–Iraq Baghdad - Iraq

2 College of Administration and Economics, Aliraqia University Baghdad – Iraq

3 College of Administration and Economics, Tikrit University Tikrit-Iraq

Abstract

This research explores the differences between the Unified Accounting System (UAS) and the International Financial Reporting Standards (IFRS). Two methodologies were employed to achieve the research objective: A series of local studies highlighted deficiencies in the disclosure processes of companies operating under the local UAS. A comparative analysis of the key elements of financial statements was conducted under both UAS and IFRS, shedding light on the impact these differences have on accounting disclosure. The research findings indicate that adherence to the UAS leads to misleading financial reporting and fails to provide users with accurate, appropriate information. Furthermore, corporate governance is complicated by this disclosure gap, especially for businesses that are listed on the Iraq Stock Exchange (ISX). The absence of alignment with IFRS standards undermines transparency, potentially leading to suboptimal decision-making by investors and stakeholders in the ISX.

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References

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Interdisciplinary Journal of Management Studies
Volume 19, Issue 1
January 2026
Pages 207-219

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