The exploration and evaluation expenditures under the umbrella of International Financial Reporting Standard (IFRS 6) and their role in supporting the financial performance of Iraqi oil exploration companies

Abstract

The research aims to demonstrate the impact of the International Financial Reporting Standard (IFRS 6) on supporting the financial performance of Iraqi oil exploration companies. This is done by analyzing the financial data of the selected oil exploration company for the year 2022. The research measures how IFRS 6 supports financial performance by using a set of financial ratios that align with the adopted financial data. Additionally, the programs (Excel) were used to extract the results related to the applied aspect of the research. The researchers concluded that, based on the financial analysis results, the adoption of (IFRS 6) had a direct impact on the financial performance of the sample company by presenting financial data that reflects the company’s performance and true financial position. The researchers also provided a set of recommendations, the most important being the necessity of adopting (IFRS 6) by Iraqi oil economic units, as this adoption is a crucial step in improving their financial performance