Download or read book Reclassification of Financial Assets written by International Accounting Standards Board and published by . This book was released on 2008 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Financial Instruments written by International Accounting Standards Committee and published by . This book was released on 2000 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Reclassification of Financial Assets effective Date and Transition written by International Accounting Standards Board and published by . This book was released on 2008 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Reclassification of Financial Assets written by and published by . This book was released on 2008 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Consequences of Fair Value Reclassifications of Financial Assets According to IAS 39 written by Meryem Önüt and published by GRIN Verlag. This book was released on 2017-10-16 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2015 in the subject Business economics - Accounting and Taxes, grade: 2,0, University of Hohenheim, language: English, abstract: The purpose of this thesis is to provide direct empirical evidence on the use of the Amendment according to IAS 39 regarding the reclassification of financial instruments. It therefore reviews what happened when the accounting policies were switched from fair value accounting to historical accounting during the financial crisis in 2008. Using a sample of manually collected data from Western European banks, the thesis empiri-cally examines which banks used this reclassification option to deal with problematic financial assets and how these reclassification activities are correlated with other firm characteristics. Furthermore, the thesis shows the influence of the amount of assets in each fair value level on the fair value hierarchy and the impact of the banks’ regulatory capital during the height of the financial crises on the use of the relaxation option. The final aim is to analyze the economic consequences of this option and to determine how beneficial it is for the global financial system, considering that banks will again make use of this sort of permission in other, future crises. After the development of the International Financial Reporting Standards (IFRS) by the International Accounting Standard Board (IASB) in 2001, the European Union (EU) decided to unify the jurisdictions for all listed corporations and therefore decreed a mandatory adoption of IFRS in the EU. The EU reasoned that common ac-counting standards improve capital market efficiency and reduce information processing and auditing costs. However, the decisive reason for the adoption of IFRS was that today’s global economy requires global standards to ensure transparency, accountability and comparability of financial accounts. IFRS was preferred because of its focus on a fair value-based method of accounting compared to historical cost accounting, and the EU claimed that adopting IFRS would bring financial stability while serving the interests of the public.
Download or read book Financial Instruments with Characteristics of Equity written by and published by . This book was released on 2018 with total page 147 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Accounting discretion of banks during a financial crisis written by Mr.Luc Laeven and published by International Monetary Fund. This book was released on 2009-09-01 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper shows that banks use accounting discretion to overstate the value of distressed assets. Banks' balance sheets overvalue real estate-related assets compared to the market value of these assets, especially during the U.S. mortgage crisis. Share prices of banks with large exposure to mortgage-backed securities also react favorably to recent changes in accounting rules that relax fair-value accounting, and these banks provision less for bad loans. Furthermore, distressed banks use discretion in the classification of mortgage-backed securities to inflate their books. Our results indicate that banks' balance sheets offer a distorted view of the financial health of the banks.
Download or read book IFRS 9 Financial Instruments International financial reporting standard 9 written by and published by . This book was released on 2009 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book IFRS 5 Non current Assets Held for Sale and Discontinued Operations written by International Accounting Standards Board and published by . This book was released on 2004 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The change from amortised costs to fair value regarding the International Financial Reporting Standards 9 written by Kristina Kraljevic and published by GRIN Verlag. This book was released on 2020-07-28 with total page 113 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2019 in the subject Economics - Finance, grade: 1, University of Applied Sciences Wiener Neustadt (Austria), language: English, abstract: This paper examines the adaption of the International Financial Reporting Standards 9, effective as of 1 January 2018. The introduction outlines the reasons for the amendments and the objectives of IFRS 9 which are divided into three phases. The focus of this paper is the effect of IFRS 9 on financial liabilities. While the International Accounting Standards 39 for financial liabilities are still accurate, IFRS 9 lead to a change in the fair value option. As a result, changes in the fair value which are caused by the own credit risk are booked into the other comprehensive income. This paper aims to give an overview on the relevant changes regarding IFRS 9. However, the main focus is set at the liabilities side, the classification and the measurement of financial liabilities. Although the IASB intended to create a model in order to classify financial instruments of both the asset and the liabilities side, it had to prioritise the asset side owing to the financial crisis and the demand for new regulations in 2009. Therefore, the research context considers the adjustment of the fair value option (FVO) treatment. Due to the new regulation, changes in the own credit spread or rather the creditworthiness need to be captured under the position “other comprehensive income” (OCI), which affects the net income. Unless the financial liability is designated as FVO, the subsequent measurement of the liability follows amortised cost. However, choosing the FVO implies that once the change in the credit spread has been recorded under the OCI, the amount is not reclassified into the profit-and-loss account (P & L). In contrast to that, a reclassification is permitted within equity e.g. a financial liability designated at FVO that is derecognised. The reason for the new regulation is based on IAS 39 and the measurement of liabilities in regard to the credit spread. Although, the creditworthiness deteriorated during the financial crisis, financial institutions had to realise the increasing credit spread in the P & L as an earning and a decreasing fair value (FV) of the liability. This mixed-model approach is a reason for the volatility in P & L’s and has been revised in the course of the IFRS 9.
Download or read book Monetary and Financial Statistics Manual written by International Monetary Fund. Statistics Dept. and published by International Monetary Fund. This book was released on 2000-09-14 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Manual offers guidelines for the presentation of monetary and financial statistics. It provides a set of tools for identifying, classifying, and recording stocks and flows of financial assets and liabilities, describes the standard, analytically oriented frame works in which the statistics may be presented, and identifies a set of analytically useful aggregates within those frameworks. The concepts and principles set out in the Manual are harmonized with those of the System of National Accounts 1993.
Download or read book The IFRS Option to Reclassify Financial Assets Out of Fair Value in 2008 written by Peter Fiechter and published by . This book was released on 2019 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: Amendment of IAS 39 by the IASB in 2008 provided an option to reclassify investments from fair value to historical cost. Whereas this option was available to all firms, it was particularly relevant to banks. We predict that “too important to fail” (TITF) banks took less advantage of this option than non-TITF banks because the political protection they enjoyed insulated them from regulatory pressure. Banks that did not enjoy this protection had greater reason to make use of the option to reclassify since doing so would protect their Tier 1 capital. As predicted, findings reveal that TITF banks made less use of the reclassification option to protect their Tier 1 capital and that there is a significant moderating influence of TITF status on the incentive to reclassify investments for banks with lower regulatory capital. This finding is consistent with TITF banks placing less weight on protecting regulatory capital than non-TITF banks, and thereby retaining flexibility to sell assets. Taken together, our findings provide evidence that accounting choices made by managers are affected by the importance of their firms to the economies in which they are domiciled.
Download or read book Improvements to IFRSs written by International Accounting Standards Board and published by . This book was released on 2010 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Fair Value Measurements written by International Accounting Standards Board and published by . This book was released on 2006 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Fair Value Reclassifications of Financial Assets During the Financial Crisis written by Jannis Bischof and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: At the peak of the financial crisis in October 2008, the IASB amended IAS 39 to grant companies the option of abandoning fair value recognition for selected financial assets. Using a comprehensive global sample of publicly listed IFRS banks, we find that banks use the reclassification option to forgo the recognition of fair value losses and ultimately the regulatory costs of supervisory intervention. Analyses of stock market reactions suggest that a small subset of the most troubled banks benefit from such reclassifications. However, analyses of related footnote disclosures reveal that two-thirds of reclassifying banks do not fully comply with the accompanying IFRS 7 requirements. These banks experience a significant increase in bid-ask spreads in the long run. -- Bank Regulation ; Fair Value Accounting ; Financial Crisis ; IAS 39 ; IFRS 7
Download or read book IFRS 4 Insurance Contracts written by International Accounting Standards Board and published by . This book was released on 2004 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Embedded Derivatives written by International Accounting Standards Board and published by . This book was released on 2009 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt:
