The impact of IFRS 9 impairment calculation on European banks’ market rating

Abstract

Following the financial crisis, the set of rules governing international accounting needed to be reshaped so that financial disturbance could be predicted in future. As of 1 January 2018, IFRS 9 specified how financial instruments should classify and measure and how impairment should be recognised. In this paper our objective has been to identify IFRS 9 financial statement figures significantly affecting the market rate of financial institutions. We have found that the market was more affected by the volume of financial instruments and impairments than by their evolution in time.