Abstract

The Impact of Adoption of IFRS 9 on the Value Relevance of Accounting Information for the Companies Listed in ISX

Saeb Salim Mohammed, Prof Dr Bushra Najem Aubdullah Al-Mashhadani

Volume: 11 Issue: 3 2021

Abstract:

This research aims to know the effect of adopting IFRS 9 on the relevance of the value of the accounting information of the companies in the Iraqi Stock Exchange. Researchers relied on analyzing the financial statements of 10 listed companies for years 2016 – 2019. Researchers used the Ohlson price model to test the relationship between accounting information and value relevance. The research indicated that there is a significant relationship between the adoption of IFRS 9 and the relevance of the value of the earnings and the book value, but the earnings information is more relevance than the book value information, it is due to the interest of investors in the income statement in making investment decisions.

DOI: http://doi.org/10.37648/ijrssh.v11i03.024

Back Download

References

• Abu Nassar, Muhammad and Humaidat, Jumah (2016), “International Accounting and Financial Reporting Standards: Theoretical and Practical Aspects”, 3rd Edition, Amman - Jordan.
• BDO (2019), ' IFRS in Practice 2019 – IFRS 9 Financial Instruments'.
• Brito, R. P., & Júdice, P. M. C. R. A. (2020). Asset classification under the IFRS 9 framework for the construction of a banking investment portfolio.
• Bundesbank D. (2019). “IFRS9 from the perspective of banking supervision', Monthly Report.
• Gaffney, E., & McCann, F. (2018). Credit risk under IFRS 9 accounting reforms: An application to Irish mortgages. Central Bank of Ireland Research Technical Paper.
• Gupta, P. (2008). Financial Instruments standards: A guide on IAS 32, IAS 39 and IFRS 7. Tata McGraw-Hill Publishing Company Limited.
• Holzmann, O. J., & Munter, P. (2015). Classification and measurement of financial instruments: a study of divergence, not convergence. Journal of Corporate Accounting & Finance, 26(5), 103-107.
• Huian, M. C. (2012). Accounting for financial assets and financial liabilities according to IFRS 9. Analele Ştiinţifice ale Universităţii» Alexandru Ioan Cuza «din Iaşi. Ştiinţe economice, 59(1), 27-47.
• IFRS (2014), ' IFRS 9 Financial Instruments'.
• Knežević, G., Pavlović, V., & Stevanović, S. (2015). New accounting rules for the recognition and measurement of financial instruments: Some issues implied by the IFRS 9. Ekonomski pogledi, 17(3), 91-105.
• KPMG (2018), “Insights into IFRS, An overview ', Audit Committee Institute'.
• Kund, A. G., & Rugilo, D. (2018). Does IFRS 9 Increase Financial Stability?. Available at SSRN 3282509.
• Kwon, G. (2009). The value relevance of book values, earnings and cash flows: evidence from Korea. International Journal of Business and Management, 4(10), 28-42.
• Păşcan, I. D. (2015). Measuring the effects of IFRS adoption on accounting quality: A review. Procedia Economics and Finance, 32, 580-587.
• Pervan, I., & Bartulović, M. (2014). Value relevance of accounting information: evidence from South Eastern European countries. Economic research-Ekonomska istraživanja, 27(1), 181-190.
• PWC (2014), “In depth - IFRS 9 – Classification and measurement'.
• PWC (2017). IFRS 9 Financial Instruments-Understanding the Basics. London: PWC.
• Robu, I. B., Carp, M., Istrate, C., Popescu, C., & Robu, M. A. (2016). The value relevance of financial information under the influence of country risks. The case of the Indian listed companies. Review of Economic and Business Studies, 9(2), 77-93.
• Sichirollo, A. E. (2015). IFRS 9 “Financial Instruments”: Background, Development and Expected Impact (Bachelor's thesis, Università Ca'Foscari Venezia).
• Tong, T. L. (2014). A Review of the Expected Credit Loss Model of IFRS 9 (2014) Financial Instruments. Recuperado de: http://www. masb. org. my/pdf. php.
• Volarević, H., & Varović, M. (2018). Internal model for ifrs 9-expected credit losses calculation. Ekonomski pregled, 69(3), 269-297.
• Weygandt, J., Kimmel, P., Kieso, D., (2015) ' Financial accounting: IFRS edition', 3 rd Ed., John Wiley & Sons.