2024, Vol. 7, Issue 2

This study aims to determine whether applying International Accounting Standard (IAS 12) improves the usefulness of accounting information and addresses the differences between accounting profit and tax profit under IAS 12, specifically regarding deferred tax assets and liabilities. Additionally, it examines the applicability of IAS 12 and its impact on the financial statements of commercial banks.

The study was conducted on a sample of Iraqi commercial banks listed on the Iraqi Stock Exchange for the years 2020-2023. IAS 12 was applied, and both the quality of accounting information and creative accounting practices were measured. The relationships between variables were analyzed to determine correlation and impact.

The study concluded that significant impact relationships exist between IAS 12 and the quality of accounting information. Applying IAS 12 in the sampled banks enhances the quality of accounting information in terms of relevance and faithful representation. Moreover, the results indicate that IAS 12 helps reduce creative accounting practices and their adverse effects.