An analytical study of the accounting treatments resulting from the removal of three zeros from the Iraqi currency within the framework of international accounting standards.
January 2026 , Pages 30-52
Authors
Prof.Dr.Rizgar Ali Ahmed Ahmed 1
1 College of Management and Economics...Department of Accounting
10.17656/12026
Keywords
Abstract
This research aims to study the accounting treatments for the process of removing three zeros from the Iraqi currency, within the framework of international accounting standards, by presenting numerical examples and hypothetical and proposed accounting restrictions. The researcher reached a set of results indicating that removing zeros from the Iraqi currency represents a change in the monetary unit of measurement and simplifies accounting treatments. Furthermore, removing zeros does not constitute a revaluation of assets and liabilities, but rather a formal change in the monetary unit. According to the implicit framework of International Accounting Standards, particularly IAS 21 and 29, this formal change does not affect the profits and losses of economic entities. Moreover, the changes resulting from removing zeros necessitate adjustments to the nominal value of assets and liabilities in the financial records and statements, with full disclosure of these changes being mandatory. Based on these findings, the researcher recommends that the implementation of zero removal and digital transformation should take into account the existing accounting and financial environment in the country, along with a study of economic and political stability by the central bank, relevant ministries, and banks to ensure that market and psychological disruption does not occur, leading to chaos and hindering the smooth success of the process.
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- First online10 January 2026
- Published at10 January 2026
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