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The Preparation of Banking Industry in Implementing IFRS 9 Financial Instruments (A Case Study of HSBC Holdings Plc Listed on London Stock Exchange of Year 2015 2017)

Author

Listed:
  • Rene Johannes

    (FEIS Universitas Bakrie, Indonesia,)

  • Dedy Dedy

    (FEIS Universitas Bakrie, Indonesia,)

  • Abdullah Muksin

    (FEB - UPI YAI, Indonesia)

Abstract

Global financial crisis 2008 was a very close call of total systemic collapse in financial markets. This had urged the leaders of G20 to involve the key global accounting standards bodies for creating a single high-quality global standard. IFRS 9 Financial Instruments' released in 2014 is a project of IASB to achieve that goal and its effective date is 1 January 2018. However, a poll found that 46 percent of 91 banks in the world (excluding some U.S. banks) believe not having adequate resources to implement the standard by 2018. That is why this research wants to figure out the preparation of banking industry especially HSBC Holdings Plc to implement the standard. Using an exploratory research method, the researcher has found out that HSBC has been well-prepared to implement the standard. The findings of this research also realize a certain extent of agreement to MacNeal's theory and positive theory introduced by Watts & Zimmerman.

Suggested Citation

  • Rene Johannes & Dedy Dedy & Abdullah Muksin, 2018. "The Preparation of Banking Industry in Implementing IFRS 9 Financial Instruments (A Case Study of HSBC Holdings Plc Listed on London Stock Exchange of Year 2015 2017)," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 124-136.
    • Handle: RePEc:eco:journ1:2018-06-19
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    References listed on IDEAS

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    Cited by:

    1. Maramaga Doctorly Mapulane & Michael Adelowotan & Garth Barnes, 2023. "Assessment Of The Application Of Ifrs 9 Requirements By South African State-owned Entities," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 11(3-4), pages 121-130.
    2. Emil Ślązak & Magdalena Skwarzec, 2022. "The effects of IFRS 9 valuation model on cost of risk in commercial banks – the impact of COVID-19," Bank i Kredyt, Narodowy Bank Polski, vol. 53(1), pages 47-78.

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    More about this item

    Keywords

    IAS 39; IFRS 9; financial instruments; recognition and measurement; financial reporting;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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