Aproposed framework for developing the accounting system for non-profit organizations in the Iriq environment in accordance with selected international accounting standards

(Applied Research)

Abstract

The research aims to identify non-profit organizations and international efforts to issue accounting standards for these organizations, as well as the accounting standards and international financial reporting standards relevant to their activities. It also aims to develop a proposed accounting system that takes these standards into account and applies it to the research sample.  Non-profit organizations play an important role in society, providing activities in various fields (charitable, social, cultural, and economic), and participating with governments in providing humanitarian and social services. Therefore, professional organizations in some countries, such as the United States, the United Kingdom, Australia, Canada, New Zealand, and East Asian countries, have sought to issue standards regulating financial transactions in line with the specific nature of these organizations' activities, so that financial statements are appropriate, comparable, and fairly disclose the results of their activities. However, in the Iraqi context, there is no accounting system for these organizations. Transactions are recorded and financial statements are prepared according to the Unified Accounting System issued in 2011, even though the system does not include these organizations within its scope. Therefore, the research problem is represented by the following questions:

Does the unified accounting system adopted by non-profit organizations provide appropriate and sufficient solutions regarding accounting treatments and financial reporting?

Is it possible to develop an accounting system for non-profit organizations in accordance with the accounting standards relevant to non-profit organizations issued by a number of countries around the world, including the United States and the United Kingdom?

The research derives its importance from the organization of accounting work in non-profit organizations in the Iraqi environment, in accordance with relevant standards for non-profit organizations issued by a number of countries around the world, including the United States and the United Kingdom.

The research reached a set of conclusions, the most prominent of which was that the unified accounting system adopted by non-profit organizations does not meet their requirements and the needs of their users.