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The Mixed Accounting Model under IAS 39: Current Impact on Bank Balance Sheets and Future Developments


  • Bischof, Jannis

    (University of Mannheim)

  • Ebert, Michael

    (University of Mannheim)


Accounting for financial instruments is based on a combination of fair value and amortized cost measurement. This paper examines how IAS 39’s mixed accounting model is reflected in measurement and presentation choices of international banks and how those choices will be altered by future regulation (IFRS 9 and Basel III). Potential problems arising from the approach taken by the IASB, such as earnings management or biases in investor perception, are identified and discussed.

Suggested Citation

  • Bischof, Jannis & Ebert, Michael, 2011. "The Mixed Accounting Model under IAS 39: Current Impact on Bank Balance Sheets and Future Developments," Journal of Financial Transformation, Capco Institute, vol. 31, pages 165-172.
  • Handle: RePEc:ris:jofitr:1450

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    References listed on IDEAS

    1. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters,in: This Time Is Different: Eight Centuries of Financial Folly Princeton University Press.
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    3. Reinhart, Karmen & Rogoff, Kenneth, 2009. ""This time is different": panorama of eight centuries of financial crises," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 77-114, March.
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    7. Benjamin J. Keys & Tanmoy Mukherjee & Amit Seru & Vikrant Vig, 2010. "Did Securitization Lead to Lax Screening? Evidence from Subprime Loans," The Quarterly Journal of Economics, Oxford University Press, vol. 125(1), pages 307-362.
    8. Boudoukh, Jacob, et al, 1997. "Pricing Mortgage-Backed Securities in a Multifactor Interest Rate Environment: A Multivariate Density Estimation Approach," Review of Financial Studies, Society for Financial Studies, vol. 10(2), pages 405-446.
    9. Frank Fabozzi & Vinod Kothari, 2007. "Securitization: The Tool of Financial Transformation," Yale School of Management Working Papers amz2495, Yale School of Management, revised 01 Jul 2007.
    10. Shojai, Shahin & Feiger, George, 2009. "Economists’ hubris – the case of asset pricing," Journal of Financial Transformation, Capco Institute, vol. 27, pages 9-13.
    11. Hunter, Greg, 2009. "Anatomy of the 2008 financial crisis: an economic analysis postmortem," Journal of Financial Transformation, Capco Institute, vol. 27, pages 45-48.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Fair Value; IAS 39; IFRS 9; Financial Instruments; Disclosure;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting


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