Year:2023   Volume: 5   Issue: 5   Area:

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  3. ID: 876

Amna Ahmed SLMAN, Fidaa Adnan OUBID


Through this research, the researcher seeks to use the International Financial Reporting Standard (IFRS13) fair value accounting on the financial assets of the merged companies before and after the merger, and then demonstrate its use on the financial assets before and after the merger, applied research in the International Islamic Bank (joint stock company) i.e. merger The International Islamic Bank with the First Capital Islamic Bank). To find out the use of the International Financial Reporting Standard (IFRS13) fair value accounting for financial assets, the detailed financial statements of the merged companies represented by the International Islamic Bank (a joint stock company) were used. The problem of the research was the existence of the phenomenon of inflation, which led to a reconsideration of the use of the historical cost method and the search for an accounting alternative for measurement that reflects the price changes realistically for the different market conditions, which generated the need for the merged companies to use an alternative to the historical cost basis based on the International Financial Reporting Standard for fair value ( IFSR13) as a value that reflects the values of the market elements at the time of preparing the financial statements that meet the needs of the many parties used for this data. The importance of the research using fair value accounting in the accounting application and the extent to which the community of the merging companies and their dealers of investors, auditors and clients benefit from the activities of the merging companies. Through this study, a number of conclusions were reached, the most important of which is the use of the international standard (IFSR13) fair value accounting for the merged companies, which leads to the preparation of financial statements that honestly and fairly express the result of the activity and the different results of the financial position, which is reflected in rational decision-making, and the increase in the amount of financial assets as a result Merger and the use of criterion measurements by measuring financial assets based on the declared prices in the market, and the researcher recommends to the management of the merging companies in Iraq to use the standard (IFSR13) in order to provide appropriate information for users of the financial statements for the purpose of making economic decisions that reflect the economic reality.

Keywords: Fair Value Accounting, International Financial Reporting Standard (Ifsr13), Merge