The effect of applying IFRS on earnings management using a model (Kothari et al., 2005)

Abstract

The research aims to test the impact of the application of International Financial Reporting Standards (IFRS) in managing profits in the Iraqi environment, by applying to 110 views (bank / year) in Iraqi commercial banks listed in the Iraqi Stock Exchange for the period from 2011-2020. All research variables were quantitatively measured based on the models developed by the previous literature, where the application of the International Financial Reporting Standards (IFRS) was measured using a dummy variable given the number (1) for the years after the application of (IFRS) and the number (0) for the years before the application of (IFRS). Profit management was measured using a model (Kothari et al., 2005), as well as a set of statistical methods for testing hypotheses and knowing the size of the correlation, impact and level of significance between research variables and using statistical programs (Statistical Package for Social Sciences-SPSS Vr.22), (Eviews-v22). The results of the research showed: There is a statistically significant and positive impact relationship between the application of International Financial Reporting Standards (IFRS) and earnings management.