Abstract

Abstract: for the importance represented by the net profit for the related parties institution resort administration to exercise a kind of deliberate influence and manipulation declared profits through the use of real or accounting methods, whether in the framework of standards and accounting principles or outside an effort behind achieving the objectives of certain desires, so the adoption of stakeholders on the number accounting profit unit without taking into account other factors that lead to the reduction of the quality of the profit level that would lead to take irrational decisions because of a bias in income by the administration measure, despite the role that could be accounting standards play in reduction of the behavior of earnings management, but that these efforts are limited, which requires a review of some of the rules and practices and accounting standards, and this is primarily the responsibility of the relevant authorities to organize and develop accounting standards, and be by adjusting the range available to the administration to act in use alternatives available and focus on the need to compel institutions to apply these standards and away from opportunism to say a lot of things that are governed by discretion of management.The study aimed to find the extent of the practice of earnings management in Iraqi companies and the risks involved by identifying the nature of such operations and indicators and methods used in the exercise and their implications, the study showed the departments of companies out practice earnings management significantly and that the disparity concentration and duration between those companies, and the study pointed out the seriousness of this phenomenon on the performance of companies and the credibility of the financial reports published and lack of quality properties which affect the decision of users of those reports.

DOI:10.52113/6/2016-6-1/1-1122