The impact of the application of the International Accounting Standard (IFARS 17) on the Financial Reporting of Iraqi Insurance Companies

This research examines the impact of applying International Financial Reporting Standard IFRS 17 on the financial reporting of Iraqi insurance companies. The research problem arises from the use of several different accounting practices for insurance contracts, which makes it difficult for users of financial statements to understand and compare information. The study aims to analyze the requirements of IFRS 17 related to insurance contracts and identify the most important changes it introduced to the accounting treatment of insurance contracts compared with IFRS 4. It also seeks to determine the expected effects of applying the measurement models and presentation mechanisms included in the standard on the financial statements of Iraqi insurance companies. The study concluded that applying IFRS 17 is expected to enhance the relevance and transparency of financial reporting by providing more reliable and comparable information that more accurately reflects the economic reality of insurance contracts. The results also indicated that the application of the standard may lead to an increase in the level of assets and liabilities presented in the statement of financial position and a decrease in profits in the income statement, due to changes in the measurement, presentation, and recognition of insurance contract revenues and expenses. The study recommends that Iraqi insurance companies prepare the necessary requirements for transition to IFRS 17, update accounting and regulatory systems, and train preparers and users of financial statements to ensure efficient and effective implementation of the standard.