impact of IFRS Adopting on Altman Model Prediction Accuracy
- Author(s): Mohammed Hussein Ali ; Hayder Ali Abdullah ; Rassol Abd Aljalil Mahdi ; Mohammed Faez Hasan
Abstract
Study the prediction of failure is an exciting topic in time of deteriorating economy. Banks compromise an important pilar within any economy. Altman model for prediction of financial failure is well-known application amongst the academicians. Current study test the impact of adopting IFRS on the accuracy of Altman model by testing the output of the model before and after imposing the IFRS application in the Iraqi private banks in 2017. The major finding of the study is that adopting IFRS enhanced the model prediction accuracy toward much plausible results.
