IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-030-99873-8_20.html
   My bibliography  Save this book chapter

IFRS 9 – Implications on Procyclicality

In: Regulation of Finance and Accounting

Author

Listed:
  • Oľga Pastiranová

    (Prague University of Economics and Business)

  • Jiří Witzany

    (Prague University of Economics and Business)

Abstract

The aim of this study is to analyze the cyclical behavior of loan loss provisions under IFRS 9 provisioning rules as compared to the previous standard IAS 39. Provisioning rules under IAS 39 were considered procyclical, and there has been an appeal to replace the incurred credit loss model with the expected credit loss model, which was assumed to have a countercyclical impact. However, recent development indicates the opposite. The hypothesis that loan loss provisions under IFRS 9 provisioning rules have procyclical effects was empirically tested and confirmed by the panel regression analysis of quarterly GDP growth and impairment ratio on the sample of EU member countries for the period 1Q 2015–3Q 2020.

Suggested Citation

  • Oľga Pastiranová & Jiří Witzany, 2022. "IFRS 9 – Implications on Procyclicality," Springer Proceedings in Business and Economics, in: David Procházka (ed.), Regulation of Finance and Accounting, chapter 0, pages 251-260, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-99873-8_20
    DOI: 10.1007/978-3-030-99873-8_20
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-3-030-99873-8_20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.