MEASURING THE LEVEL OF PROFIT MANAGEMENT IN LIGHT OF THE ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS AND ITS IMPACT ON THE FINANCIAL STATEMENTS (APPLIED STUDY AT AL KHALEEJ COMMERCIAL BANK)

Abstract

The research aims to address the theoretical framework for profit management in terms of concept and importance and address the ethical perspective with a focus on measuring the level of profit management in light of the adoption of international financial reporting standards and to show the impact of this on the financial statements in a way that is consistent with the accompanying changes of the modern business environment. The research was applied in the Khaleeji Commercial Bank for the period from 2016 to 2020, where the modified (Jones, 1995) model was used in order to measure the level of profit management in light of the adoption of international financial reporting standards in the research sample bank. The research reached a set of conclusions, including that there is a possibility to measure earnings management practices in the research sample, and negative earnings management practices can be reduced by improving the quality of financial statements and reports, improving the transparency of financial reports, and good disclosure of information that reflects the reality of the financial position and profits and the extent of interest in reports sustainability.