{"id":1857,"date":"2020-11-04T17:01:47","date_gmt":"2020-11-04T16:01:47","guid":{"rendered":"https:\/\/frjournal.eu\/journal\/?p=1857"},"modified":"2020-11-04T17:02:07","modified_gmt":"2020-11-04T16:02:07","slug":"is-ifrs-9-better-than-ias-39-for-investors-decisions-evidence-from-the-european-context-at-the-beginning-of-the-transition-year","status":"publish","type":"post","link":"https:\/\/frjournal.eu\/journal\/2020\/11\/04\/is-ifrs-9-better-than-ias-39-for-investors-decisions-evidence-from-the-european-context-at-the-beginning-of-the-transition-year\/","title":{"rendered":"Is IFRS 9 better than IAS 39 for investors\u2019 decisions? Evidence from the European context at the beginning of the transition year"},"content":{"rendered":"<p>Mechelli Alessandro, Sforza Vincenzo, Cimini Riccardo \/ Financial Reporting \/ 1-2020<\/p>\n<hr \/>\n<p>The first-time adoption of International Financial Reporting Standards (IFRS) 9 at the beginning of fiscal year 2018 has offered the opportunity to test whether the informationn provided by this new accounting standard on financial instruments is more useful for investors than International Accounting Standard (IAS) 39. This paper assesses and compares the value relevance of book value calculated according to the requirements of the two accounting standards on financial instruments at the beginning of the transition year for a sample of 110 financial entities listed in 20 stock markets that have recorded transition effects between retained earnings. Findings provide evidence that both IAS 39 and IFRS 9 are value relevant and that the second one adds more infromation than that previously supplied by the first one. The paper contributes to the literature by providing the first evidence of the usefulness of the new accounting standard on financial instruments. About its practical implications, the paper provides insights regarding the high quaity of the International Accounting Standards Board (IASB)&#8217;s standard setting process.<\/p>\n<p>IFRS 9, IAS 39, value relevance, European Union, financial entities<\/p>\n<hr \/>\n<div class=\"fusion-button-wrapper fusion-aligncenter\"><style type=\"text\/css\" scoped=\"scoped\">.fusion-button.button-1 .fusion-button-text, .fusion-button.button-1 i {color:#ffffff;}.fusion-button.button-1 {border-width:0px;border-color:#ffffff;}.fusion-button.button-1 .fusion-button-icon-divider{border-color:#ffffff;}.fusion-button.button-1:hover .fusion-button-text, .fusion-button.button-1:hover i,.fusion-button.button-1:focus .fusion-button-text, .fusion-button.button-1:focus i,.fusion-button.button-1:active .fusion-button-text, .fusion-button.button-1:active{color:#ffffff;}.fusion-button.button-1:hover, .fusion-button.button-1:focus, .fusion-button.button-1:active{border-width:0px;border-color:#ffffff;}.fusion-button.button-1:hover .fusion-button-icon-divider, .fusion-button.button-1:hover .fusion-button-icon-divider, .fusion-button.button-1:active .fusion-button-icon-divider{border-color:#ffffff;}.fusion-button.button-1{width:auto;}<\/style><a class=\"fusion-button button-flat fusion-button-round button-large button-default button-1\" target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.francoangeli.it\/riviste\/SchedaRivista.aspx?IDArticolo=66438&amp;Tipo=Articolo%20PDF&amp;lingua=it&amp;idRivista=163\"><span class=\"fusion-button-text\">Read Article<\/span><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Mechelli Alessandro, Sforza Vincenzo, Cimini Riccardo \/ Financial Reporting \/ 1-2020 The first-time adoption of International Financial Reporting Standards (IFRS) 9 at the beginning of fiscal year 2018 has offered the opportunity to test whether the informationn provided by this new accounting standard on financial instruments is more useful for investors than International Accounting Standard [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"quote","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[30,1],"tags":[411,412,410,409,136],"class_list":["post-1857","post","type-post","status-publish","format-quote","hentry","category-browse-the-journal","category-financial-reporting","tag-european-union","tag-financial-entities","tag-ias-39","tag-ifrs-9","tag-value-relevance","post_format-post-format-quote"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Is IFRS 9 better than IAS 39 for investors\u2019 decisions? Evidence from the European context at the beginning of the transition year | Financial Reporting Journal<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/frjournal.eu\/journal\/2020\/11\/04\/is-ifrs-9-better-than-ias-39-for-investors-decisions-evidence-from-the-european-context-at-the-beginning-of-the-transition-year\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is IFRS 9 better than IAS 39 for investors\u2019 decisions? Evidence from the European context at the beginning of the transition year | Financial Reporting Journal\" \/>\n<meta property=\"og:description\" content=\"Mechelli Alessandro, Sforza Vincenzo, Cimini Riccardo \/ Financial Reporting \/ 1-2020 The first-time adoption of International Financial Reporting Standards (IFRS) 9 at the beginning of fiscal year 2018 has offered the opportunity to test whether the informationn provided by this new accounting standard on financial instruments is more useful for investors than International Accounting Standard [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/frjournal.eu\/journal\/2020\/11\/04\/is-ifrs-9-better-than-ias-39-for-investors-decisions-evidence-from-the-european-context-at-the-beginning-of-the-transition-year\/\" \/>\n<meta property=\"og:site_name\" content=\"Financial Reporting Journal\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-04T16:01:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-11-04T16:02:07+00:00\" \/>\n<meta name=\"author\" content=\"Laura Bini\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Laura Bini\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/frjournal.eu\\\/journal\\\/2020\\\/11\\\/04\\\/is-ifrs-9-better-than-ias-39-for-investors-decisions-evidence-from-the-european-context-at-the-beginning-of-the-transition-year\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/frjournal.eu\\\/journal\\\/2020\\\/11\\\/04\\\/is-ifrs-9-better-than-ias-39-for-investors-decisions-evidence-from-the-european-context-at-the-beginning-of-the-transition-year\\\/\"},\"author\":{\"name\":\"Laura Bini\",\"@id\":\"https:\\\/\\\/frjournal.eu\\\/journal\\\/#\\\/schema\\\/person\\\/d92fb46103bc536c63f8000f2cb595ac\"},\"headline\":\"Is IFRS 9 better than IAS 39 for investors\u2019 decisions? 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