A proposal to use accounting for derivative tools in government units A study of the Iraqi budget for the period 2004-2018

Abstract

The research dealt with the use of derived financial assets and their accounting in government units, by studying the Iraqi federal budget for the period from January 2004 to August 2018 and recognizing and disclosing them in the final account of the Republic of Iraq, and the researcher suggested that this activity be funded from the monetary reserve and at a rate not exceeding 10 % Of the total monetary reserve with the intention of investing, while the aim of the research was to shed light on that important activity and to deal with these tools derived from the specialized units of the state that do not deal with them, as an attempt to highlight the role of financial derivatives in addressing the persistent deficit in water Iraqi Azna and as a new tool to finance public debt, and the researcher reached to count the financial derivatives from the important financial engineering tools that include a set of benefits while surrounding them with a set of risks when dealing with them, and it is one of the topics that occupies the thinking of those responsible for practicing that activity to finance the budget deficit and reduce dependence On the oil rents, which constituted 90% of the state's budget revenues, the researcher recommended a number of recommendations, including diversifying the sources of budget revenues to reduce the risks resulting from the deficit in the government budget without relying on oil rents, and the possibility of using financial derivatives One possible solution.