Cuadernos de Economía

ISSN : 0210-0266

The impact of the convergence of international standards for financial reporting and the preparation and implementation of planning budgets on the company's performance in Iraq

  • Zuhair Khudair Abbas , Department of Accounting, Faculty of Economics and Management of Sfax (FSEGS), Tunisia Tikrit University, Iraq
  • Raida Chakroun , Department of Accounting, Graduate Institute of Higher Business Studies (IHEC) Carthage University, Tunisia LIGUE laboratory, LR99ES24, University of Manouba, Tunisia


Budgeting, international financial reporting convergence, implementing planning budgets, firm size, company performance.


At present, the allocation of financial resources for planning purposes has emerged as a critical determinant of an organization's achievement, necessitating the careful consideration of academic research and regulatory bodies. Therefore, the present study investigates the impact of budgeting, convergence to International Financial Reporting Standards (IFRS), and the implementation of planned budgets on the performance of manufacturing companies in Iraq. This study also examines the moderating influence of business size on budgeting, IFRS convergence, the implementation of planning budgets, and the performance of manufacturing companies in Iraq. In order to achieve its objectives, the research conducted a survey by administering a questionnaire to a sample of 560 individuals comprising accountants, department heads, and division managers who are responsible for budget preparation at companies within the relevant industry. A total of 294 forms were deemed valid for statistical analysis in the present study. The study additionally employed SPSS-AMOS software to assess the validity of the items and examine the relationships between variables. The research findings indicated a statistically significant and favorable correlation between the practice of budgeting, the adoption of International Financial Reporting Standards (IFRS) convergence, the implementation of planning budgets, and the overall performance of manufacturing companies in Iraq. The findings of the study revealed that business size played a substantial moderating role in the relationship between budgeting, IFRS convergence, implementing planned budgets, and the performance of manufacturing companies in Iraq. The results suggest that it would be beneficial to implement budgetary planning and utilize it as a mechanism for converting the organization's objectives and strategies into measurable and digitized formats. This approach has the potential to enhance the overall operational efficiency and effectiveness of the company.