Accounting in Europe · 2016 · 59 citations · 9 references
BusinessAccountancyAccountingFinancial AccountingInternational AccountingPublic DebtCredit RatingsCredit RiskDebt ReportingFinancial ReportingFinancial RiskInternational Financial Reporting StandardsAsset Impairment IndicatorsBond Loss RecognitionBond Rating SystemsCapital ImpairmentDebt ImpairmentImpairment DisclosuresImpairment ReportingListing Of Impairments
International Financial Reporting Standard 9 (IFRS 9) 9 introduces new impairment rules responding to the G20 critique that International Accounting Standard 39 (IAS 39) results in the delayed and insufficient recognition of credit losses. In a case study of a Greek government bond for the period 2009–2011 when Greece’s credit rating declined sharply, this paper highlights the discretion that preparers have when estimating impairments. IFRS 9 relies more on management expectations and will lead to earlier impairments. However, these appear still delayed and low if compared to the fair value losses.
9