The Extent of possibility to which IFRS 6 is applicable in Iraqi crude oil production companies

Authors

  • Dr. Hani Hameed Mushjl كلية الادارة والاقتصاد/ جامعة واسط/العراق
  • Ammar Raheem Ageely AL-Gherebawy كلية الادارة والاقتصاد/ جامعة واسط/العراق

Keywords:

IFRS 6, Iraq, accounting treatments

Abstract

 Abstract

The problem of research is the processing of exploration and drilling assets as well as the processing of the costs of these two phases in accordance with IFRS 6 as well as in the preparation, disclosure and control of financial reporting, thereby ensuring the economic well-being of the community.

This research aims to:

  • Statement of weaknesses and strengths in the application of IFRS 6 in Iraqi crude oil production companies.
  • Improve the processing of exploration and drilling costs by developing strengths and addressing existing weaknesses.
  • Preparation of financial reporting based on IFRS 6 and valuation of crude oil production according to the said standard.

The research reached a number of conclusions, the most important of which are:

  Failure in some accounting treatments adopted by the oil companies because there is no accounting system for mineral resources, especially the oil industry, and instead abide by the principles, principles and instructions provided by the unified accounting system. This system is currently applied in the Iraqi oil companies, IFRS6 in the area of ​​measurement and disclosure.

The research concluded with a number of recommendations, the most important of which are:

  The improvement in the accounting treatments followed by the oil companies and the establishment of a special accounting system for these companies in isolation from other industries to address this system all the details of this industry in view of its specificity, importance and complexity, in order to comply with international accounting standards, especially IFRS 6, The current consolidated accounting does not provide sufficient benefit to users of information through financial reporting and does not meet the requirements of IFRS 6 and is an obstacle to the application of this standard because it does not contain sufficient measurement and disclosure for the oil industry.

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References

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Published

2019-12-20

How to Cite

Dr. Hani Hameed Mushjl, & Ammar Raheem Ageely AL-Gherebawy. (2019). The Extent of possibility to which IFRS 6 is applicable in Iraqi crude oil production companies. Al Kut Journal of Economics and Administrative Sciences, 11(34), 103–118. Retrieved from http://kjeas.uowasit.edu.iq/index.php/kjeas/article/view/220