Here is the article rewritten in Markdown format:

Iraq’s Financial Reporting and Compliance: A Step Towards Transparency

In a bid to boost investor confidence and ensure transparency in the country’s financial markets, Iraq has made significant strides in implementing international standards for financial reporting and compliance.

The Role of the Board of Accounting and Auditing Standards (BAAS)

At the helm of this effort is the BAAS, which works under the Federal Board of Supreme Audit (FBSA) and is chaired by the President of the FBSA. The BAAS plays a crucial role in setting national accounting standards, ensuring that all companies operating in Iraq adhere to international best practices.

Implementation of International Financial Reporting Standards (IFRS)

Under the Iraqi Company Law, amended in 2004, all companies are required to apply IFRS. Article 133 explicitly states that accounts should be consolidated with those of related companies according to international accounting standards, unless otherwise modified by Iraqi standards. This move is seen as a major step towards promoting transparency and accountability in the country’s corporate sector.

Iraq Interim Law on Securities Markets

Furthermore, the Iraq Interim Law on Securities Markets, adopted in April 2004, requires IFRS compliance for all listed companies trading on the Iraq Stock Exchange (ISE). The law stipulates that financial statements must be presented on a comparative basis with those of the preceding fiscal year, audited by an independent auditor licensed in Iraq and prepared according to international accounting standards.

Convergence with International Accounting Standards

The implementation of these regulations has sent a strong signal to investors and stakeholders alike that Iraq is committed to adopting global best practices in financial reporting and compliance. With its membership in the Asian-Oceanian Standard-Setters Group (AOSSG), Iraq remains at the forefront of regional efforts to promote convergence with international accounting standards.

Outlook for Investment and Economic Growth

As the country continues to rebuild and revitalize its economy, the adoption of IFRS and compliance with securities laws is expected to play a vital role in restoring investor confidence and promoting economic growth. With its regulatory framework in place, Iraq is poised to become an attractive destination for foreign investment and a model for other countries in the region.

Key Points:

• The BAAS sets national accounting standards and ensures companies adhere to international best practices.
• All companies operating in Iraq are required to apply IFRS under the Iraqi Company Law.
• The Iraq Interim Law on Securities Markets requires IFRS compliance for listed companies trading on the ISE.
• Iraq’s membership in AOSSG promotes convergence with international accounting standards.
• The adoption of IFRS and securities laws is expected to restore investor confidence and promote economic growth.