THE IMPORTANCE OF ADOPTION INTERNATIONAL ACCOUNTING STANDARD (IAS 12) THE INCOME TAXES TO DRAW THE FOREIGN INVESTMENTS AND DEVELOPING THE IRAQI ECONOMY

Abstract

One of the important bases requires to attract the foreign investments is the obligation of the
state and its companies to apply the International Standards in preparing its suitable financial
reporting which therefore makes it trustworthy for the investors where he can read and compare
it with the economic activities for the same sector, or with the last years, and with other
international companies in addition to the attaining the sufficient disclosure and the requisite
transparency. In closing, the research will come up within important conclusion which is the
necessity to depend on the International Standard No. (12) for income taxes in drafting the
accounting policies which have to be followed in Iraq local environment. Since the unified
accounting system applied in Iraq has become old, and restricted within the Iraqi environment
only, where it came to serve the objectives which have become limited and old due to the
changes taken place inside and outside the environment of the country, consequently, it does not
assist in its current status to attract the foreign investments which therefore requires its
adjustment and this is what the research is aiming at