The impact of applying the FB-MP sustainability standard on the quality of financial reporting Applied research into Iraqi agricultural companies operating in the meat, poultry and dairy industry sector listed on the Iraq Stock Exchange

Abstract

The study aims to know and diagnose the relationship between the application of sustainability accounting standards (FB-MP), which is concerned with the meat, poultry, and dairy industry in agricultural companies, and its relationship to the quality of reporting in financial reports, as companies’ pursuit of sustainable development through adherence to their standards and measurement indicators is one of the Factors that improve the quality of reporting in accounting reports. The research problem stems from the weak disclosure of Iraqi companies operating in the agricultural sector and listed on the Iraqi Stock Exchange about the indicators of the sustainability standard (FB-MP) in their published reports, due to their main and important role in enhancing the quality of financial reporting. Hence the research hypothesis: Does applying the FB-MP sustainability accounting standard have an impact on the quality of reporting in the financial reports of the companies in the research sample? The importance of the research identified the importance of sustainability accounting standards (SASB standards) and their indicators, which include financial and non-financial information reported in accounting reports. The study sample represented companies in the agricultural sector, which numbered (4) companies for the period (2016-2022). The level of reporting of financial and non-financial information (SASB standards) was measured by using the sustainability accounting standard for the meat, poultry and dairy industry (FB-MP standard). ). And measuring the quality of reporting by analyzing the statements of the research sample companies to determine the qualitative characteristics of the accounting information in the accounting statements using solid indicators that match what is stated in the conceptual framework of financial accounting. The results of the research showed that companies recorded a weakness in disclosing indicators measuring the sustainability standard (FB-MP) if they reached (21.35%) .The quality of financial reports is low (35.475%). The most important conclusions were as follows: - Sustainability accounting, through standards issued by relevant professional institutions and their measurement indicators, such as SASB standards, contributes to the quality of reporting in the reports provided by the organization, and this information increases investors’ confidence in it.