The Impact of the Application of the IFRS16 Lease Contract Standard on the Quality of the Financial Reports of the Leased Units

Abstract

Lease contracts are one of the most important accounting topics whose treatment methods often affect the credibility of the financial reports, The importance of this research lies in the need of decision-makers for high-quality accounting information that reflects the economic events that took place during the financial period, especially the tenant’s lease contracts and methods of recording them, which has an impact on the financial reports issued by the economic units. Therefore, the research problem is that the leased units did not apply the IFRS 16 standard, which affects the quality of the financial statements information for these units. The researchers reached important conclusions, including that there is a significant and statistically significant effect of the IFRS16 standard on the accounting reports and on the quality of the accounting information. The researcher also recommended the need to issue a law on financial leasing, as in many countries of the world, so that the Iraqi economic units become able to practice this type of important funding sources that these units need.