The Impact of Financial Crises on Accounting Operations: An Applied Study on Iraqi Joint-Stock Companies

Abstract

This research examines how financial crises affect accounting practices in Iraqi joint-stock companies, focusing on accounting conservatism, accounting stress, and the accuracy of financial measurement and disclosure. Using financial data from periods before, during, and after crises, and applying models such as the Basu model and linear regression, the study finds that crises significantly increase accounting conservatism, with losses recognized more quickly during crisis periods. The results also show higher accounting stress, reflected in increased provisions and greater reliance on accounting estimates, alongside declining profits and liquidity. The study concludes that financial crises reduce the accuracy of financial measurement and disclosure, highlighting the need for greater transparency, improved accounting measurement tools, and enhanced professional training to ensure reliable financial reporting during periods of instability.