The Impact of Applying International Financial Reporting Standards on Improving Financial Performance in Commercial Banks

Over the past decades, the world has witnessed radical changes on many levels, including the economic, financial, capital markets, and the growth of multinational corporations, which led to an increase in the demand for financial and accounting information that is understandable, reliable, and transparent, and comparable across international borders. The International Reporting Standard (IFRS) Fifi helps in carrying out this task by comparing the financial performance of institutions across countries.The main objective of this study is to demonstrate the impact of the application of international financial reporting standards on the improvement of financial performance and to compare the effects of financial ratios results in the field of liquidity, profitability and indebtedness, as the study was applied in The commercial banks were used as a sample for the study, and the main performance indicators were used through the financial ratios of the selected banks for the data related to the annual report published according to the International Financial Reporting Standards (IFRS) for the past four years before and after the habituation (IFRS). Ratios are important for different stakeholders, especially investors, so this study focused on the extent of the difference between the results of the financial ratios applied to the financial data prepared under both the unified accounting system and the international financial reporting standards for a sample of commercial banks listed in the Iraq market for financial securities of the Iraqi Commercial Bank , and the Iraqi divine knowledge, and the study reached a set of conclusions, the most important of which is the difference in the accounting rules and practices in light of both the international accounting standards and the unified accounting system, as the results of the study showed that due to the lack of familiarity with the international financial reporting standards in full, it had a slight impact as the recommendations of the study On financial ratios, and there are still many restrictions in front of the application of these standards in their correct form, whether these restrictions are related to local accounting policies or related to an efficient market due to the availability of fair value for many items of the general budget when preparing financial reports. The study recommended the need for banks to fully apply the international financial reporting standards for the purpose of demonstrating their impact on financial performance, as well as the study recommending the existence of an independent supervisory body to ensure the extent of the commitment of banks listed in the financial stock market to apply the international financial reporting standard.