The impact of adopting IFRS 7 on the disclosure of banking risks: An applied study in Iraqi banks

• zeyad khalaf

  University Of Fallujah

  Author

This research aims to measure the impact of adopting International Financial Reporting Standard (IFRS 7) on improving the level of banking risk disclosure in Iraqi banks listed on the Iraq Stock Exchange. This was achieved through an analysis of credit, liquidity, and market risk disclosure during the period 2016–2025. The study employed a descriptive-analytical approach using a purposive sample of nine Iraqi banks, with a total of 90 annual observations. Content analysis of financial statements was used to construct a disclosure index consisting of 35 items, in accordance with IFRS 7 requirements. The results showed a clear increase in the level of disclosure after the standard's implementation, with the overall average rising from relatively low levels before implementation to significantly higher levels afterward. Furthermore, regression analysis revealed a positive and significant impact of credit risk disclosure on the quality of financial reports, in addition to a strong impact of liquidity risk disclosure on company value. The t-test results confirmed significant differences between the pre- and post-implementation periods in the level of market risk disclosure, reflecting the effectiveness of IFRS 7 in enhancing transparency and reducing information asymmetry.The study concluded that the implementation of IFRS 7 has significantly improved the quality of financial reporting and raised the level of banking risk disclosure. However, the level of compliance remains below ideal standards compared to international practices, indicating a gap that requires regulatory and technical attention.

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