Classification and Measurement under IFRS 9: A Commentary and Suggestions for Future Research

Kvaal, Erlend; Löw, Edgar; Novotny-Farkas, Zoltán; Panaretou, Argyro; Renders, Annelies; Sampers, Peter

doi:10.1080/17449480.2023.2253808

Cited by 7 publications

(3 citation statements)

References 58 publications

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“…The following sub-sections present the classification and measurement of financial assets and financial liabilities under IFRS 9: Financial Instruments. Kvaal et al (2023) states that all the financial assets should be evaluated based on the cash flows characteristics and/or business model where they are kept. The business model entails how an entity manages the financial assets portfolios in practice to create cash flows by selling assets or collecting the contractual cash flows or both (Sichirollo, 2015).…”

Section: Application Of Ifrs 9: Financial Instrumentsmentioning

confidence: 99%

“…Gornjak (2017) notes that the treatment of the initial measurement and initial recognition is the same between the IAS 39 and IFRS 9, however, major changes are noted on the financial instruments' classification and its subsequent measurement. Kvaal et al (2023) identifies that accounting treatment on financial liability stays greatly unchanged under IFRS 9. However, changes were only made to deal with own credit issues where entities opt to use fair value when measuring financial liabilities (Kvaal et al 2023).…”

Section: Measurement and Classification Of Financial Assetsmentioning

confidence: 99%

“…Kvaal et al (2023) identifies that accounting treatment on financial liability stays greatly unchanged under IFRS 9. However, changes were only made to deal with own credit issues where entities opt to use fair value when measuring financial liabilities (Kvaal et al 2023). Johannes et al (2018) also identify that the financial liabilities' classification is basically unaffected where some liabilities are measured at a fair value but gain or loss concerning own credit risk changes should be part of other comprehensive income.…”

Section: Measurement and Classification Of Financial Assetsmentioning

confidence: 99%

See 2 more Smart Citations

Assessment of the Application of Ifrs 9 Requirements by South African State-Owned Entities

Mapulane,

Adelowotan,

Barnes

2023

EJEF

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The global financial crisis in 2008 nearly resulted in a possible total collapse in the financial markets, which resulted in the development of new International Financial Reporting Standard (IFRS) 9: Financial Instrument. This study’s objective is to assess the quality information presented in the accounting policies in relation to IFRS 9: Financial Instruments, by the selected South African State-Owned Entities (SA SOEs) listed in Schedule 2 of the Public Finance Management Act (PFMA). The researchers have been interested in the factors of implementation and compliance of IFRS, though most of these studies are dominated by Asian and European countries with few for Africa. Using qualitative content analysis, the authors assessed the quality information in the accounting policies in relation to IFRS 9 against SOEs’ financial reporting. This study found that most of the SOEs applied the requirements of the IFRS 9 standard in terms of classification and measurement of financial assets and liabilities, though there is still room for improvement on the quality of the information provided by SOEs in their financial reports. The improvement on the quality of financial reporting is critical, as it could in turn help to build trust and confidence of investors to attract further investment.

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Section: Application Of Ifrs 9: Financial Instrumentsmentioning

confidence: 99%

Section: Measurement and Classification Of Financial Assetsmentioning

confidence: 99%

Section: Measurement and Classification Of Financial Assetsmentioning

confidence: 99%

See 1 more Smart Citation

Assessment of the Application of Ifrs 9 Requirements by South African State-Owned Entities

Mapulane,

Adelowotan,

Barnes

2023

EJEF

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Regulatory and contextual factors influencing earnings and capital management decisions: evidence from the European banking sector

Casciello,

Maffei,

Ziebart

2024

Rev Quant Finan Acc

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This study investigates whether some regulatory and contextual features influenced Euro Area listed banks decisions to manage earnings and regulatory capital through discretionary provisions in the period 2013–2018. The new regulation factors are the pressure to increase high-quality regulatory capital (Basel III) and more timely recognition of loan losses (IFRS 9). The contextual features are the intensified banking competition at a national level, and the significant money market pressure. Results demonstrate that the pressure to increase high-quality regulatory capital for banks with lower Common Equity Tier 1 capital (CET1) in year t − 1 is negatively associated with upward earnings and capital management in year t. The more timely recognition of loan losses in year t compared to year t + 1 is negatively associated with upward earnings and capital management in year t. The strengthening of banking competition is positively associated with upward earnings management, but not associated with upward capital management. The increasing money market pressure is negatively associated with upward earnings management, but not associated with upward capital management. This study should be helpful to standard-setters, regulators, investors and academics interested in incentives and constraints to earnings and capital management by providing evidence regarding how listed banks reacted to the regulatory, accounting, and contextual factors, observed holistically during a unique historical period (i.e., 2013–2018) and regulatory setting (i.e., European banking sector).

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The evolution of fair value measurement

Fontes,

Panaretou,

Shakespeare

2024

Accounting and Business Research

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Classification and Measurement under IFRS 9: A Commentary and Suggestions for Future Research

Cited by 7 publications

References 58 publications

Assessment of the Application of Ifrs 9 Requirements by South African State-Owned Entities

Assessment of the Application of Ifrs 9 Requirements by South African State-Owned Entities

Regulatory and contextual factors influencing earnings and capital management decisions: evidence from the European banking sector

The evolution of fair value measurement

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