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

Nikolaos Eriotis, Theodoros Kounadeas, Dimitrios Vasiliou
International Journal of Finance, Insurance and Risk Management, Volume 9, Issue 3-4, 29-51, 2019
DOI: 10.35808/ijfirm/196


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.

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