Sustainability from an accounting perspective in the Iraqi environment

Abstract

This research paper aims to present researchers' views on sustainability from an accounting perspective in the Iraqi context, examining the findings of previous studies related to sustainability and their reflection in the Iraqi accounting environment. It is based on the premise that "commitment to sustainability from an accounting perspective contributes to the advancement of financial markets towards accounting globalization." After discussing the current study with previous research, it was concluded that sustainability accounting forms a bridge between traditional financial record-keeping methods and the broader objectives of Iraq's 2030 Sustainable Development Vision. In the Iraqi context, this type of accounting meets the requirements of economic development by changing how capital is managed, how risks are measured, and how the country's natural resources are preserved. Most studies indicate a growing interest in adopting the Global Reporting Initiative (GRI) standards, but disclosure levels are often rated as "weak" (ranging from 29% to 39% in recent years), with many companies failing to report on specific environmental and social indicators. We recommend that the Iraqi Accounting and Standards Board, in coordination with the Securities Commission, mandate sustainability reporting for companies listed on the Iraq Stock Exchange and issue a resolution requiring them to submit a minimum standard of such reports. This should be accompanied by granting industrial companies and major banks a specific grace period to fully implement the sustainability provisions of International Financial Reporting Standards (IFRS S1) and (IFRS S2).