Search Results for financial-ratios

Abstract

The current study aims to predict the failure of companies through the use of financial ratios derived from cash flow disclosure and then categorize them into two categories, the safe category means that the company is in a secure financial position capable of providing cash and fulfilling financial obligations, and the second category is the unsafe category where the company is In a troubled financial situation unable to meet the financial obligations, as (11) financial ratios derived from the cash flow statement were used, and the study was applied in the Iraq Stock Exchange, as the sample consisted of (42) companies listed in it and for the period 2016-2020. Through the use of logistic regression analysis to the prediction model that works to classify companies, with an accuracy rate of 52.4%, the model consists of (4) financial ratios, which are (the ratio of operational activity, the ratio of operating cash to sales, the ratio of operating cash return to total assets, and finally the percentage of cash return operating to total liabilities)

Abstract

The research aims to study and analyze the cognitive foundations of analytical procedures and the efficiency of external auditors, in addition to reviewing the relevant literature on the quality of financial reporting. It focuses on the extent to which analytical procedures are applied and on verifying the external auditor’s commitment to their implementation within a selected sample of Iraqi banks (Iraqi National Bank) The study is based on the hypothesis that adopting sound analytical procedures, supported by an audit team that is scientifically and professionally qualified, positively impacts the quality of financial reporting of the audited entity. To achieve the research objectives, the financial statements of the sampled banks were analyzed using financial ratios representing liquidity, activity, leverage, and profitability.

Through a comparison between the ratios used by the external auditors and those applied by the researcher, it was found that the auditors primarily focused on liquidity indicators, applying only the current ratio, without extending the analysis to other ratios related to activity, profitability, and leverage.

The findings revealed that the effective application of analytical procedures by competent external auditors enhances the quality of financial reporting, as each element reinforces the other’s effectiveness; any weakness in one dimension directly affects the reliability of financial reports.

The researcher recommends that analytical procedures and financial ratios be applied by auditors throughout all stages of the audit process, as they provide essential support in determining the nature, timing, and extent of audit tests, while maintaining previous results for comparative and future evaluation purposes..

Abstract

This research aims to explore the importance of financial analysis and its contribution to enhancing environmental performance evaluation by utilizing financial ratios in financial analysis and addressing environmental issues to improve and maintain the environment and performance of government units. The research problem centres on the negative impact of neglecting financial analysis of financial statements and the financial information they contain regarding environmental performance on making appropriate decisions in performance evaluation. Therefore, the researchers sought to prove the hypothesis that using financial ratios in financial analysis and comparing financial information with non-financial information enhances environmental performance evaluation procedures. The study examined the environmental reality of the Medical City Directorate under the Ministry of Health, which is considered a unit affecting the environment. It involved an analytical review of the issued reports and financial analysis of the budget execution statement. The research concluded that the government unit in question showed weak environmental performance due to insufficient attention to pollution control, affecting most environmental aspects, and failure to apply environmental laws and regulations. Key recommendations include the need to comply with environmental laws and regulations and the necessity of establishing an environmental auditing plan or program to cover all environmental activities of the directorate.

Abstract

Due to the boom in information technology and the space it occupies in all joints of life, especially financial, economic, military..... Etc. This technology has to be used and utilized in financial analysis to help investors make the best investment decision. The researcher deals with the mechanism and method of creating a computerized model using Microsoft Access to extract the results of financial ratios and calculate the average cost of financing, in addition to identify the fair share price and compare it with the market price, for the purpose of identifying the level of deviation in the market price, whether higher or lower than Fair price. The program has been fed with mathematical functions to help extract results so that investors can use them anytime possible. The researcher considered the use of this type of software helps to prevent manipulation and modification of the results extracted, allowing the opportunity for all dealers to get the results fairly and equally with opportunities. The researcher reached a number of conclusions the most important are the arrival of information technology beyond the expected point of access, and therefore boundless. Information technology can also be used to improve the country's financial reality and keep pace with developments in the financial sector worldwide. In addition to the conclusions, the researcher Suggested set of recommendations for those who wish to take them out of the most important, the need to enter information technology and programming in the construction of the financial and economic sector of the country because of its speed in performance, processing and accuracy in the results. It is also necessary to start establishing information technology centers to help build state sectors on the latest methods and techniques.

Abstract

The research aims to explain the measurement and accounting disclosure of lease contracts in accordance with the IFRS 16 standard and its impact on the informational content of the financial statements. To achieve the research objective, the researcher applied the IFRS 16 standard in Gulf Bank because it did not apply the IFRS 16 standard during the period of application of the standard in 2019, and the researcher prepared The financial statements were prepared in accordance with the requirements of the standard before and after application, and in a retrospective manner, according to what the standard allowed, with other variables held constant. The researcher provided a detailed analysis of the impact of applying IFRS 16 on the informational content of the financial statements by comparing the results before and after application, as well as the impact of that application on Financial ratios.

The researcher reached a set of conclusions, the most important of which are the following:

- The application of the IFRS 16 standard leads to the recognition of the right to use the asset among non-current assets, which leads to an increase in assets with a decrease in prepaid expenses, as a result of the amendments in order to apply the standard represented by reversing the prepaid expenses before application. In addition, recognizing lease obligations as non-current liabilities leads to an increase in total liabilities.

The application of IFRS 16 affects the informational content of the statement of changes in equity, especially when applied using the modified retrospective method, as a decrease in retained earnings resulting from an increase in the volume of expenses due to an increase in debit interest expenses and depreciation expenses leads, therefore, to a decrease in retained earnings.

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

- The need for lease contracts to be clearer by stating the important paragraphs that have an impact on the process of accounting treatments related to the application of IFRS 16, which are (duration, payments, purchase option, the extent of the lessee’s control over the asset subject to the lease, and so on).

- The necessity of qualifying staff working in accounting departments in the banking sector, given that it is obligated to apply international standards and other sectors through training on conducting accounting treatments for lease contracts in accordance with the IFRS16 standard, as treatments that are radically different from what used to be the treatment of lease contracts according to local accounting systems.

Abstract

This study aims to evaluate the factors influencing the success of the transition to electronic payment systems in Iraqi banks and to analyze the relationship between the adoption of electronic payment systems and the extent to which the adoption of these systems affects the reduction of operating costs without affecting the quality of services provided by them. The importance of this study stems from the accelerated shift towards digitization in the financial field and supporting national trends towards the transition to a non-cash economy. The study adopted the null hypothesis that there is no statistically significant effect of adopting electronic payment systems in reducing operating costs in Iraqi banks. The study adopted the descriptive analytical approach to explain the problem and the relationships between its elements by collecting financial data for a sample of Iraqi banks for the period (2020-2024) and deriving financial ratios that represent the study variables. The study reached several results, the most important of which is the lack of an effect of adopting electronic payment systems in reducing operating costs in Iraqi banks, despite the good level of application of electronic payment systems by these banks, with a positive correlation between the level of adoption of electronic payment systems. The level of operational costs, and the study presented several recommendations, including updating cost systems to be consistent with the nature of the digital transformation in the use of payment systems, enhancing awareness campaigns and customer confidence to expand the base of use of electronic payment methods, and updating electronic payment systems periodically to avoid technical failures and maintain cyber security.