Impact of Governance Applications and Sustainability Accounting Standards and Its Role in Enhancing Performance and Financial Reporting to Strengthen Confidence in Financial Statements

(Comparative Applied Research in A sample of Iraqi and Arabic Corporations Listed in the Financial Market )

A Dissertation Submitted to

 The Council of the College of Administration and

 Economics – University of  Kerbala, as  Partial Fulfillment of  Requirements for the Degree of Master in Accounting

By

MOHAMMED ABDULRASOOL JABER ALMAMORY

Supervised by

Prof. Dr. TALAL MOHAMMED ALI AL JAJAWY

Abstract

In general, all companies, whether Arab or international, seek to achieve the desired goals and desired to be achieved through the application of governance indicators in accordance with the standards (GRI) and sustainability accounting standards issued by the Council (SASB) because of its importance and its place and reputation internationally and have the ability to attract capital By creating working conditions, qualifications and a healthy environment so that companies can make their name in the ranks of international companies because these indicators and standards have a comprehensive understanding of the nature of work with the surrounding conditions, and the problem of this research is the contribution of governance applications and sustainability accounting standards Performance and financial reporting to enhance confidence in the financial statements.

This research aims at identifying the impact of governance applications and sustainability accounting standards by analyzing the annual financial reports of Iraqi and Arab companies listed in the financial market and the extent to which the research sample companies adhere to the implementation of GRI standards and sustainability accounting standards in improving performance and financial reporting to enhance confidence in The results of the analytical research of the annual financial reports showed that the companies’ commitment to the transport sector among the sectors (the research sample) in implementing the indicators of governance according to the GRI standards, but the percentage was weak with the general average of the members of the research sample (27.498%). As well as the highest level of reporting, the indicators of governance according to the criteria of (GRI) of Jordan Company for the transfer of specialized transport for the year 2017 (about 46.662%) means this weakness in reporting on governance. As regards the sustainability criteria, the commitment of the telecommunications sector companies to implement sustainability issues related to the standard of telecommunications services was about 54.165%. This means that there is a degree of acceptability in applying the standard. As well as the highest level of reporting to the standard (Jordan Telecom) for the sample of the year 2017, where the ratio was about (74.998%) and indicates the good rate in the application of the standard.

In addition, the opinions of a group of individuals in the companies (the sample of the research) were identified through the distribution of the questionnaire aimed at enhancing the results of the research and showing that the governance applications contribute to improving performance and financial reporting to enhance confidence in the financial statements by applying the indicators of governance according to ( GRI). As well as the sustainability issues of the telecom, transport, and garment sectors, when applied in companies, contribute to improved performance and financial reporting to enhance confidence in the financial statements, which indicates that the assumptions are being implemented. As for the most important recommendations reached, it is mandatory to apply the standards and rules of corporate governance because of their common importance with the standards of sustainability accounting of transparency, fairness, justice, equality and others, and the need for a deep understanding of its role and emphasize its application.