The Impact of Implementing IFRSs and SASB Standards on Corporate Financial Performance: An Empirical Study on Pira Zerin Company
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Abstract
This research aims to explain the importance and application of International Financial Reporting Standards (IFRSs) and Sustainability Accounting Standards (SASB). More specifically, it seeks to demonstrate the impact of applying these standards on the financial performance of companies, with a focus on the construction sector in the Kurdistan Region of Iraq. The theoretical part of the study relies on the frameworks of IFRSs and SASB. The practical part involved calculating key financial performance ratios both before and after applying specific standards to the financial statements of Pira Zerin Company. These standards included International Accounting Standard 16 (IAS 16) and International Financial Reporting Standards 1, 13, and 18 (IFRS 1, IFRS 13, and IFRS 18), as well as the SASB Construction Materials Standard (EM-CM).
The study used a descriptive and applied approach. The research population consisted of companies in the construction sector of Duhok City in the Kurdistan Region of Iraq, a sector chosen for its significant financial and accounting challenges and its direct impact on the environment and society. The sample for the study was Pira zerin Company for General Contracting, Electrical, and Mechanical Services.
The study reached several key conclusions. The application of these standards enhances the transparency and reliability of financial information. The integration of IFRSs and SASB links financial and non-financial disclosures, thereby strengthening sustainability reporting. Applying the SASB EM-CM standard led to a short-term increase in operating expenses but enhances the company's value in the long run. Finally, adopting international standards bridges the gap between local systems and global reporting requirements in emerging economies. The research provides practical insights for companies aiming to apply these standards and sustainability practices in the construction sector.
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