IFRS 9 Financial Assets: Debt Instrument Classification and Management Under the New Accounting Standard—A Case Study of Greek Government Bonds in Banks’ Investment Portfolios

Nikolaos Sachlas and Vasileios Giannopoulos ()
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Nikolaos Sachlas: University of Peloponnese
Vasileios Giannopoulos: University of Peloponnese

A chapter in Essays on Financial Analytics, 2023, pp 175-204 from Springer

Abstract: Abstract This study examines the effects, in financial statements, from different allocations of bonds, a characteristic type of debt instrument according to business models introduced by IFRS 9. Manager discretion in allocating bonds to their investment portfolios, and specifically bank managers, who invest significant amounts in those types of assets, can lead to significant differences in figures, for the same bonds, especially in periods of relative financial stability. The findings of this study suggest that excess “freedom” allowed by the new standard can lead to distortions for each period banks report under IFRS, in accordance with managers’ decision for initial classification and subsequent measurement.

Keywords: IFRS 9; Business models; ECL model; Government bonds; Banks (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-3-031-29050-3_10

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DOI: 10.1007/978-3-031-29050-3_10

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