Measurement and disclosure of intangible assets and their implications for investment decisions A comparative application study in light of the requirements of IAS 38 and the uniform accounting system

Abstract

The limitation in accounting treatments, and disclosure requirements in the uniform accounting system, and the absence of local accounting rules in the field of accounting for intangible assets, has a big role to contribute in weakening the quality of the published accounting information. Which has clear negative implications on the efficiency of decisions of the beneficiaries in general and investment decisions in particular and their impact on growth Economic development.The aim of the research is to determine the extent of the variance in accounting treatments for intangible assets and the absence of integrated accounting standards of quality for the disclosure of such assets in the light of the adoption of the Iraqi Accounting Standard in comparison to the International Financial Reporting Standards, in particular the International Accounting Standard 38. Which is reflected negatively in the quality of information financial reports of companies listed in the financial market and the implications of this impact on the requirements and decisions of the ordinary investor, and the consequent loss of market advantage in attracting investors.In this context, the descriptive study methodology was adopted to show the extent, size and type of disclosure of intangible assets in the financial reports of companies listed on the Iraqi Stock Exchange under the application of the uniform accounting system and (IAS 38) on the quality of accounting information and its reflection in investment decisions. In this context, the comparative study applied to the published financial statements of the Bank Baghdad in light of the adoption of the uniform accounting system and the application of the International Accounting Standard (IAS38). While the tools of financial analysis were used for comparative information to show their effects in investment decisions. Several conclusions were reached. The most important of these is that the accounting information under the consolidated accounting system has different results from the requirements of IAS 38 and consequently has a negative impact on the quality of the investment decisions. In light of this, a number of recommendations were made. The most important of these was the need to adopt IAS 38 or to establish a local accounting and measurement base, in which international financial reporting standards will be used to support investment decisions and improve their role in serving the requirements of economic development