Abstract:

The oil industry is an important source of economic construction in Iraq as it is the largest financier of the state budget and it differs from other industries. It is highly risk dependent on exploration and evaluation, which may not end with any economic result. This results in abundant profits, which is reflected in policies and procedures. Accounting in the industry. Which requires the expansion of the application of the concept of transparency financial reporting of accounting information in the oil industry and in line with the latest international requirements in this area. At the time there is no accounting base in Iraq specifically addresses the accounting practices related to the extractive oil industry, but rely on the unified accounting system, which applies in all sectors and does not give privacy to the oil industry. Therefore this research aims to develop the accounting practices in the oil industry in accordance with IFRS6 to enhance the transparency and quality of the financial reporting of the Iraqi oil companies. The oil exploration company was selected as a paper sample. The research reached a number of conclusions as well as several recommendations based on those conclusions.