Insights From Academic Research on IFRS 9: A Review of the Literature
Date
Authors
Zang, Zeting
Kabir, Humayun
Scott, Tom
Supervisor
Item type
Journal Article
Degree name
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Publisher
Wiley
Abstract
International Financial Reporting Standard (IFRS) 9 Financial Instruments replaced International Accounting Standard (IAS) 39 Financial Instruments: Recognition and Measurement, effective 1st January 2018. This study synthesises empirical research on IFRS 9, focused on the three phases of the standard-setting process: classification and measurement, impairment and hedge accounting. The analysis is guided by accounting choice theory and international accounting literature. The impairment requirements received the most attention in the literature, followed by classification and measurement, and hedge accounting. The review of evidence indicates that firms generally apply the classification and measurement requirements consistent with IFRS 9. It also suggests that impairment losses under IFRS 9 are timelier, are less procyclical and are relevant to stock pricing and future bank risks. In line with accounting choice theory and international accounting literature, the evidence implies that management incentives and institutional contexts influence the effects of IFRS 9, particularly on impairment losses. Finally, the paper highlights gaps in the existing literature and suggests areas for future research.Description
Keywords
3501 Accounting, Auditing and Accountability, 3502 Banking, Finance and Investment, 35 Commerce, Management, Tourism and Services, 3507 Strategy, Management and Organisational Behaviour, 1499 Other Economics, 1501 Accounting, Auditing and Accountability, classification and measurement, expected-credit-loss impairment, financial instruments, hedge accounting, IAS 39, IFRS 9
Source
Australian Accounting Review, ISSN: 1035-6908 (Print); 1835-2561 (Online), Wiley. doi: 10.1111/auar.70020
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Rights statement
© 2026 The Author(s). Australian Accounting Review published by John Wiley & Sons Australia, Ltd on behalf of CPA Australia. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.