The Impact of adopting International Accounting Standard (IAS12) on tax accounting An applied research of Regional Trade Bank for Investment and Finance in Iraq for the year (2023)

Abstract

This research investigates the impact of Appling international accounting standard (IAS 12) on tax accounting through an applied analyses of financial statement of Regional Trade Bank for Investment and Finance in Iraq for the year 2023. This research examines the extent to which the adopting of (IAS12) in fluences the recognitions and measurement of current and deferred tax assets and liabilities and it’s impacts on the determination of taxable profit.

The descriptive-analytical methodology has been applied, the research analyses the banks financial statements before and after the application the standard, with the objective of assessing the result adjustment in the financial statement items on their implication for the tax accounting practices. The results show the application of (IAS 12) significantly enhances the accuracy of tax related discloser, raises the transparency of reporting tax liabilities and assets, and contributes to the effectiveness of tax accounting in general and the quality of financial reporting. Yet, the research recognizes that the contextual challenges in Iraq, in particular the Inconsistency between IAS`s prerequisite and Iraqi`s tax law & legislation, resulting in the possibility of delay in compliance & Successful implementation. In conclusion, the research recommends reforming tax legislation to align with (IAS12), alongside capacity building initiative for accounting professionals in the domain of tax accounting, to ensure the effective application of the standard and promote transparency and fairness and reliability with financial reporting system.