Abstract
Credit activity is the backbone of banks, so it is important to analyze and study credit risks in order to hedge against possible losses as they affect the future performance of banks, and in this research we will use the International Financial Reporting Standard IFRS9 in measuring potential credit risks by applying the expected losses model (ECL (contained within IFRS9 according to scientific foundations).the research problem was represented in the questions(Does banks adoption of the expected loss model contained in IFRS9 in treating realized losses lead to misleading the financial statements? Does applying the expected loss model contained in IFRS9 affect the quality bank profits according to their total assets?The research aimed to present the requirements of the International Financial Reporting Standard IFRS9, as well as to indicate the extent to which private Iraqi banks, the research sample (Iraqi Trade Bank ) adhere to the requirements of the content of the International Financial Reporting Standard IFRS9.In light of this, the research reached a set of conclusions, the most prominent of which is the need to apply the International Financial Reporting Standard IFRS9 financial instruments in the banks selected as the research sample, as well as the presence of great challenges facing banks in particular and economic units in general with regard to the substantial increases in credit risks with regard to the initial recognition of the application of expected credit losses According to the IFRS 9 standard, and that the application of the International Financial Reporting Standard IFRS9 achieves an increase in loan loss provisions that result in more useful provisions, especially when credit conditions deteriorate.While the most important recommendations were that banks should develop plans and procedures to face problems by applying expected credit losses according to IFRS 9 standard with regard to unstable economic conditions, especially those related to deflation and inflation, as there will be differences between provisions and depreciation of money and within international financial reporting standards, to In addition to the importance of setting a unified ratio for the provision for loan losses for the purpose of narrowing the gap in front of accounting policies that ultimately lead to a decrease in the quality of profits and moving away from managing profits
