The effect of accounting conservatism on information asymmetry in light of the adoption of International Financial Reporting Standards (IFRS 15) An Empirical Study in Iraq

Abstract

The research aims to test the effect of accounting conservatism on information asymmetry in light of the adoption of International Financial Reporting Standards (IFRS 15) in the Iraqi environment, as the research examined a sample of (15) banks listed in the Iraqi Stock Exchange for the period from 2011-2020. Accounting and information asymmetry and the International Financial Reporting Standard (IFRS 15) Revenue from contracts with customers based on several measures and indicators and in agreement with several studies, including the study (Beaver & Ryan, 2000), (Kiswanto & Fitriani, 2019), (Abou El-Enein, 2020). The variables were quantitatively measured and statistically analyzed using the statistical program (SPSS). The statistical tests showed a negative effect for accounting conservatism on information asymmetry and this negative effect increases in light of the adoption of the IFRS 15 standard as an interactive variable, meaning the greater the accounting conservatism and the level of adoption of the IFRS15 this was reflected in the low level of information asymmetry. Meaning that in a banking environment in which the rate of adoption of the IFRS15 standard is high, the negative impact of accounting conservatism (according to market value to book) in information asymmetry is more negative than that effect on the banking environment in which the rate of adoption of the IFRS15 is low.