IMPACT OF APPLYING INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ON THE LEVEL OF ACCOUNTING CONSERVATISM AND THE COST OF EQUITY: AN APPLIED STUDY ON A SAMPLE OF COMPANIES IN THE IRAQ STOCK EXCHANGE

Abstract

This research aims to study and analyze the impact of adopting International Financial Reporting Standards (IFRS). On both the level of accounting conservatism and the cost of equity of companies listed on the Iraq Stock Exchange The study relied on analyzing the financial data of a sample of Iraqi companies during a specific period of time before and after the implementation of IFRS , using the quantitative approach to accurately and objectively measure changes in both the level of accounting conservatism and the cost of equity . that adopting IFRS contributed to reducing the level of accounting conservatism due to the transparency and objectivity of these standards in presenting financial information. The results also showed an inverse relationship between the application of IFRS and the cost of equity, as the adoption of international standards helped improve the quality of financial disclosure, which reduced uncertainty among investors, and consequently led to a reduction in the cost of equity . The study recommends raising awareness among Iraqi companies about the importance of properly implementing IFRS standards , along with developing the regulatory and accounting environment in line with international requirements. This will enhance investor confidence and create a more attractive investment climate in the Iraqi financial market