Challenges of Implementing International Financial Reporting Standard 9 (IFRS 9) in Iraqi Banks: A Review Study

International Financial Reporting Standard No. 9 stands among the most consequential accounting standards to emerge in the wake of the 2008 global financial crisis, and the Central Bank of Iraq mandated its adoption by Iraqi banks beginning January 1, 2019. This study sets out to provide a systematic review of the relevant local, Arab, and international literature, with a view to identifying the principal challenges confronting Iraqi banks in applying the standard. The study adopts a systematic literature review methodology, drawing on a body of peer-reviewed research published in a range of local, Arab, and foreign academic journals. The findings indicate that the most significant challenges lie in the weakness of data infrastructure and the scarcity of the historical data series required to calculate Expected Credit Losses (ECL), compounded by the limitations of the regulatory and supervisory framework issued by the Central Bank of Iraq. Further difficulties emerge in the adverse impact of implementation on bank profitability and capital adequacy, the complexity of disclosure requirements, and the particular challenges of applying the standard within Islamic banks. The study recommends that the Central Bank of Iraq issue detailed, in-depth implementation guidelines, strengthen specialized training programs, and establish reliable national credit databases — measures the study regards as fundamental prerequisites for the sound and effective application of the standard.