Adopting the International Financial Reporting Standard IFRS 16 in the Iraqi Insurance Companies and its Impact on the Financial Statements: A Comparative Study

Abstract

The study aims to adopt the International Financial Reporting Standard (IFRS16) for lease contracts in Iraqi insurance companies and its impact on their financial performance. The company's financial statements are in accordance with the requirements of applying the international standard IFRS16, relying on the analysis of the main financial performance indicators before and after making the amendments, and indicating the extent of the change in those indicators as a result of the amendment, as well as knowing the extent of the company's efficiency in using its available resources for the purpose of expansion and growth, and achieving financial sustainability, keeping abreast of developments, and achieving sustainable development goals, and knowing the sources of financing to obtain The assets, and the most prominent findings of the study is that the finance lease contract is an effective way to finance economic units for the purpose of obtaining their assets and expanding their business, in addition to that it provides many economic benefits to the various parties to the contract. There are two contracts, the first is the contract to purchase the asset from the supplier, and the second is the lease contract for the asset to the lessee, meaning that the financing lease contract depends on three parties, namely the supplier, the owner and finally the lessee. The international standard IFRS16 also clearly distinguishes between operating and financing leases, as it distinguishes between The basic and non-essential assets of the activity, the relative importance, the size of the amounts, and the length of the contract period, which are important conditions for considering the contract as a finance lease.