Abstarct: The present study aimed to investigate the impact of financial instruments in accordance with the International Financial Reporting Standards (IFRS) on the quality of financial reporting, considering the moderating role of internal control in petroleum products distribution companies in Iraq. The research method was descxriptive-correlational. The statistical population consisted of 100 managers working in petroleum products distribution companies in Iraq. Using a census sampling method, 98 completed questionnaires were collected and returned. The research instrument was a questionnaire. Reliability was assessed using Cronbach’s alpha coefficient, and the values obtained for all variables were greater than 0.70, indicating that the questionnaire had acceptable reliability. Content and face validity were used to confirm the validity of the questionnaire. To assess content validity, the questionnaire was provided to academic experts, and their comments and recommendations were incorporated. Subsequently, to evaluate face validity, the questionnaire was administered on a preliminary basis to several managers of petroleum products distribution companies. The necessary revisions were made, and the final questionnaire was approved. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test the research hypotheses and analyze the structural model. The findings indicated that perceived benefits had no significant effect on the quality of financial reporting when considering the moderating role of internal control. Likewise, legal requirements had no significant effect on the quality of financial reporting in the presence of the moderating role of internal control. However, perceived ease of use had a significant effect on the quality of financial reporting, considering the moderating role of internal control.