The Importance of (IFRS Taxonomy) in the Framework of Extensible Business Reporting Language (XBRL) and Its Role in Facilitating the Digital Standardization Process in Banking Sector: An Analytical Study of the Opinions of a Sample of Specialized Academics and External Auditors in the City of Erbil

Abstract

The research aims to identify the importance of the IFRS Taxonomy in the process of preparing and publishing digital financial reports, and its role in facilitating the digital standardization process in the banking sector in the Kurdistan Region of Iraq. Because it helps to unify digital financial reporting and unify all accounting terms used in financial reporting according to International Financial Reporting Standards (IFRS). In order to achieve the research objective, the opinions of a sample of academics (university lecturers holding master's and doctorate degrees) and external auditors (holding a CPA degree) in the city of Erbil were surveyed, numbering (64) individuals. The questionnaire forms were distributed to them and then the results were analyzed using the Statistical Package for the Social Sciences (SPSS) program.

The research reached a set of conclusions, the most important of which is that there is a statistically significant direct relationship between the independent variable (IFRS Taxonomy) and the dependent variable (Facilitating digital Standardization), which means that whenever the IFRS Taxonomy is relied upon and adopted in financial reporting in commercial banks operating in the Kurdistan Region of Iraq, this will facilitate the digital Standardization process in the banking sector in the region.

Accordingly, the research recommended the importance of moving the banking sector in the Kurdistan Region of Iraq towards digital financial reporting and achieving standardization with the countries of the world in this field, because standardization through the use of the same International Financial Reporting Standards (IFRS) may not be achieved in all its aspects without adhering to a unified disclosure language such as (XBRL) and a unified IFRS Taxonomy, which the IFRS Foundation recommends as complementary means to achieve digital standardization internationally in International Financial Reporting Standards (IFRS).