Impairments of Greek Government Bonds under IAS 39 and IFRS 9: A Case Study
|Publication:||White Paper No. 30, 2015|
|Topic Area:||Financial Markets|
|Date:||20 Nov 2015|
|Keywords:||government bonds, IFRS 9, credit losses|
IFRS 9 introduces new impairment rules responding to the G20 critique that IAS 39 results in the delayed and insufficient recognition of credit losses. In a case study of a Greek government bond for the period 2009 to 2011 when Greece’s credit rating declined sharply, this study highlights the discretion that preparers have when estimating impairments. IFRS 9 relies more on management expectations and will lead to earlier impairments. However, these appear still delayed and low if compared to the fair value losses.
To download the study please follow this link.
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