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From IAS 39 To IFRS 9: Literature Review of Studies on the Implementation of IFRS in the European Banking Sector

Author

Listed:
  • Nikolaos Eriotis
  • Theodoros Kounadeas
  • Dimitrios Vasiliou

Abstract

Purpose: The study analyses theoretically the impact of accounting rules on the quality of information given by the financial statements of entities which operate in the European banking industry. Design/Methodology/Approach: Content analysis of studies on the Implementation of IFRS in the European Banking Sector. Findings: IASB introduced IFRS 9, as substitute of IAS 39, to improve mechanisms of classification and measurement of Financial Instruments, deemed as one of the main causes triggering the financial crisis. The financial crisis, which started in 2008, led regulators to believe that accounting standards contributed to financial stability or instability. Practical Implications: The primary goal of accounting standards and the financial statements produced under them is not to contribute to financial stability, but to provide information for investors to make a wide range of decisions and contractual arrangements. Originality Value: The information that accounting standard-setters consider relevant for investors may not be the same as that considered relevant by prudential regulators.

Suggested Citation

  • Nikolaos Eriotis & Theodoros Kounadeas & Dimitrios Vasiliou, 2019. "From IAS 39 To IFRS 9: Literature Review of Studies on the Implementation of IFRS in the European Banking Sector," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 9(3-4), pages 29-51.
    • Handle: RePEc:ers:ijfirm:v:9:y:2019:i:3-4:p:29-51
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    References listed on IDEAS

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    1. Zoltán Novotny-Farkas, 2016. "The Interaction of the IFRS 9 Expected Loss Approach with Supervisory Rules and Implications for Financial Stability," Accounting in Europe, Taylor & Francis Journals, vol. 13(2), pages 197-227, May.
    2. Paul André & Anne Cazavan-Jeny & Wolfgang Dick & Chrystelle Richard & Peter Walton, 2009. "Fair Value Accounting and the Banking Crisis in 2008: Shooting the Messenger," Accounting in Europe, Taylor & Francis Journals, vol. 6(1), pages 3-24, June.
    3. Joseph Aharony & Ran Barniv & Haim Falk, 2010. "The Impact of Mandatory IFRS Adoption on Equity Valuation of Accounting Numbers for Security Investors in the EU," European Accounting Review, Taylor & Francis Journals, vol. 19(3), pages 535-578.
    4. Basu, Sudipta, 1997. "The conservatism principle and the asymmetric timeliness of earnings," Journal of Accounting and Economics, Elsevier, vol. 24(1), pages 3-37, December.
    5. repec:dau:papers:123456789/5008 is not listed on IDEAS
    6. Duh, Rong-Ruey & Hsu, Audrey Wen-hsin & Alves, Paulo Alexandre Pimenta, 2012. "The impact of IAS 39 on the risk-relevance of earnings volatility: Evidence from foreign banks cross-listed in the USA," Journal of Contemporary Accounting and Economics, Elsevier, vol. 8(1), pages 23-38.
    7. Peter Fiechter, 2011. "Reclassification of Financial Assets under IAS 39: Impact on European Banks' Financial Statements," Accounting in Europe, Taylor & Francis Journals, vol. 8(1), pages 49-67, June.
    8. Asheq Rahman & Hector Perera & Siva Ganesh, 2002. "Accounting Practice Harmony, Accounting Regulation and Firm Characteristics," Abacus, Accounting Foundation, University of Sydney, vol. 38(1), pages 46-77, February.
    9. Bischof, Jannis & Wüstemann, Jens, 2007. "How does fair value measurement under IAS 39 affect disclosure choices of European banks?," Papers 07-75, Sonderforschungsbreich 504.
    10. Bischof, Jannis & Wüstemann, Jens, 2007. "How Does Fair Value Measurement under IAS 39 Affect Disclosure Choices of European Banks?," Sonderforschungsbereich 504 Publications 07-75, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
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    More about this item

    Keywords

    Accounting; Banking; IFRS 9; IAS 39.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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