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

Authors

DOI:

https://doi.org/10.24086/cuejhss.v7n2y2023.pp11-17

Keywords:

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

Abstract

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.

Downloads

Download data is not yet available.

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.

Downloads

Published

2023-07-10

How to Cite

Thabit, T. H., & Safi, H. M. (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. https://doi.org/10.24086/cuejhss.v7n2y2023.pp11-17

Issue

Vol. 7 No. 2 (2023)

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License [CC BY-NC-ND 4.0] that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).