Role of IFRS 9 in Banks to Reduce the Negative Impact of COVID-19 Pandemic

Keywords: IFRS 9, IAS 39, ECL, COVID-19 Pandemic, Banking Sector


The spread of the COVID-19 pandemic at the beginning of this year had a significant impact on credit and bank financing policies, which prompted the Financial Accounting Standards Board (FASB) to issue a document supporting the implementation of IFRS 9 in light of the current uncertainty resulting from this pandemic. IFRS 9 requires the application of provisions and requires and allows economic units to modify their approach to determining expected credit losses (ECL) in different circumstances and there may not be a number of assumptions and correlations inherent in the way credit loss statements are implemented so far in the current environment. This study aims to investigate the application of IFRS 9 in banks during the COVID-19 pandemic crisis by studying the impact of the financial crisis resulting from the outbreak of the pandemic in the world on estimates of ECL in the banking sector, and the researchers reached many conclusions. The most important was that although the current conditions are difficult and create high levels of uncertainty in light of the COVID-19 pandemic, but if the ECL estimates are based on reliable information Reasonable and supportive IFRS 9 has not been applied automatically so it can provide useful information about ECL, and in fact in the current environment IFRS 9 and its related disclosures can provide much needed transparency to users of financial statements.


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Author Biographies

Thabit H. Thabit, Department of Electronic Engineering, College of Electronics Engineering, Nineveh University, Iraq

Thabit H. Thabit is a lecturer at the Department of Electronic Engineering, College of Electronics Engineering, Nineveh University, Iraq. His research interest is accounting.

Hashem Mhd. Safi, Department of Accounting, Cihan University-Erbil, Kurdistan Region - Iraq

Hashem Mhd. Safi is a lecturer at the Department of Accounting, Cihan University-Erbil, Kurdistan Region - Iraq. His research interest is acconting.


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How to Cite
Thabit, T., & Safi, H. (2023). Role of IFRS 9 in Banks to Reduce the Negative Impact of COVID-19 Pandemic. Cihan University-Erbil Journal of Humanities and Social Sciences, 7(2), 11-17.