EVALUATING ACCOUNTING MEASUREMENT PRACTICES FOR INTELLECTUAL CAPITAL IN IRAQI JOINT-STOCK COMPANIES: AN ANALYTICAL STUDY FOR THE PERIOD 2022–2024

Abstract

This study evaluates accounting measurement practices for intellectual capital in Iraqi joint-stock companies by examining the suitability of the accounting models used to estimate its value and identifying the principal difficulties and limitations affecting their application. The study adopts a descriptive and analytical approach , drawing on the financial statements and annual reports of three Iraqi joint-stock companies: the Iraqi Company for the Production and Marketing of Meat and Field Crops , Al-Mansour Pharmaceutical Industries Company , and Baghdad Soft Drinks Company , for the period 2022–2024. To achieve its objectives , the study applies the market-to-book equity gap model (BTM) and the Calculated Intangible Value model (CIV) , followed by an analytical comparison and an exploratory statistical test of the differences between the resulting estimates .

The findings reveal marked variation in estimated intellectual capital values , reflecting differences in the underlying bases and indicators of the measurement models . Baghdad Soft Drinks Company recorded the highest values under both models , whereas Al-Mansour Pharmaceutical Industries Company reported positive values under the market-to-book gap model and negative values under the CIV model throughout the study period . The Iraqi Company's CIV estimates also turned positive in 2024 , confirming that the models respond differently to accounting and market indicators . The findings provide descriptive support for the research hypothesis , although the statistical evidence is insufficient to generalize the significance of the differences .

The study recommends adopting multiple , complementary measurement models , verifying the suitability of the assumptions and benchmark rates used , and developing accounting data and systems to improve the objectivity and comparability of intellectual capital measurement .