Abstract
This research aims to show the concept of provisions - contingent assets and liabilities and disclose them in financial reports in accordance with the International Accounting Standard (IAS37), and to show the extent of their impact on the financial statements to disclose the contingent elements in the local environment represented by the economic units listed on the Iraq Stock Exchange, and to indicate the extent of According to the viewpoint of users of financial reports, the need for accounting information that includes information on provisions –contingent assets and liabilities.
The main research problem was the extent to which the application of the International Accounting Standard (IAS 37) affected the disclosure of contingent elements in the financial statements of Iraqi economic units.
In order to achieve the objectives of the research and test its hypotheses, (Middle East Investment Bank, Iraqi Credit Bank, Al Mansour Investment Bank, Asia Cell Communications Company) were selected from among the economic units listed on the Iraq Stock Exchange, where the extent of these units ’commitment to the application of disclosure requirements was investigated. About provisions - contingent assets and liabilities in accordance with the International Accounting Standard (IAS37) according to the elements checklist prepared for this, as well as the application of those requirements in the Middle East Bank and the reflection of their application on the accounting information provided through the financial statements was discussed.
The study concluded that the economic units in question did not prepare their financial statements in a scientific manner and did not apply the requirements for disclosure of provisions - contingent assets and liabilities despite their importance and fundamental impact on the financial position and therefore the accounting information presented in the financial statements is misleading for users and non Useful for the purposes of making an investment decision.