Accounting Framework for Controlling Highly Complex and thoroughness Risks by Employing Financial Derivatives (COVID – 19) as a Model

“Applied research in the industrial sector of Baghdad Soft Drinks Company and Baghdad Iraq Company for Transport and Real Estate Investments”

Ph.D. dissertation submitted to

The Council of the College of Administration and Economics / University of Kerbala as a  part of the Requirements for obtaining Ph D Degree  in Accounting

By

Mohammed Salman Dawood Al Karawi

Supervised by

Prof. Dr. Talal  Mohammed Ali Aljajawy

Abstract:

           The current pandemic (Covid-19) is a topic of great importance at the present time at all levels, and it is a topic of comprehensiveness and depth; Because it has ravaged the global economy, as well as displaced a number of companies from positions that have always occupied this decline as a result of improper practices and poor management, the pandemic has been the main driver of the market in financial fluctuations and it is expected that it will affect production and sales and as a result on expected profits and then on the credibility of the financial statements Those units will be exposed to bankruptcy and it will be the opposite of what was disclosed in those lists, so some accounting treatments should be carried out and some derivative financial instruments should be introduced on them. The different accounting approaches and identification of appropriate accounting treatments and knowledge research to carry out reforms in line with international financial reporting standards, The research addresses the problem of the negative effects of crises in general and the pandemic in particular by using financial instruments derived under conditions of uncertainty and enabling them to control risks effectively and successfully, and that the application of the framework will help To manage risks and reduce their consequences, and follow the researcher in the case study The application of the accounting framework to a sample of industrial companies (Baghdad Company for Soft Drinks and Baghdad Company for Transport and Real Estate Investments) and with regard to the results that were reached when applying it, this strengthened the financial position of the research sample by acquiring financial assets as a result of accounting treatments and financial derivatives, and that the employment of those gains with assets Hedged financial instruments enhance their ability to continue and deal with risks before they occur. Controlling risks using these modern derivative tools is an essential issue for all companies based on the returns of these tools such as controlling regular financial flows, achieving capital profits and reducing risks, The research discusses the positive effects of hedging using these tools as well as the possibility Its application in industrial companies in light of the pandemic, and these units adopt strategies and methods that enable them to take risks and ensure their continuity, and then raise the competition. Strong relationship and influence between the accounting framework and control risk by employing financial derivatives.

Accounting Framework for Controlling Highly Complex and thoroughness Risks by Employing Financial Derivatives (COVID – 19) as a Model

“Applied research in the industrial sector of Baghdad Soft Drinks Company and Baghdad Iraq Company for Transport and Real Estate Investments”

Ph.D. dissertation submitted to

The Council of the College of Administration and Economics / University of Kerbala as a  part of the Requirements for obtaining Ph D Degree  in Accounting

By

Mohammed Salman Dawood Al Karawi

Supervised by

Prof. Dr. Talal  Mohammed Ali Aljajawy

Abstract:

           The current pandemic (Covid-19) is a topic of great importance at the present time at all levels, and it is a topic of comprehensiveness and depth; Because it has ravaged the global economy, as well as displaced a number of companies from positions that have always occupied this decline as a result of improper practices and poor management, the pandemic has been the main driver of the market in financial fluctuations and it is expected that it will affect production and sales and as a result on expected profits and then on the credibility of the financial statements Those units will be exposed to bankruptcy and it will be the opposite of what was disclosed in those lists, so some accounting treatments should be carried out and some derivative financial instruments should be introduced on them. The different accounting approaches and identification of appropriate accounting treatments and knowledge research to carry out reforms in line with international financial reporting standards, The research addresses the problem of the negative effects of crises in general and the pandemic in particular by using financial instruments derived under conditions of uncertainty and enabling them to control risks effectively and successfully, and that the application of the framework will help To manage risks and reduce their consequences, and follow the researcher in the case study The application of the accounting framework to a sample of industrial companies (Baghdad Company for Soft Drinks and Baghdad Company for Transport and Real Estate Investments) and with regard to the results that were reached when applying it, this strengthened the financial position of the research sample by acquiring financial assets as a result of accounting treatments and financial derivatives, and that the employment of those gains with assets Hedged financial instruments enhance their ability to continue and deal with risks before they occur. Controlling risks using these modern derivative tools is an essential issue for all companies based on the returns of these tools such as controlling regular financial flows, achieving capital profits and reducing risks, The research discusses the positive effects of hedging using these tools as well as the possibility Its application in industrial companies in light of the pandemic, and these units adopt strategies and methods that enable them to take risks and ensure their continuity, and then raise the competition. Strong relationship and influence between the accounting framework and control risk by employing financial derivatives.