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Assessment Of The Application Of Ifrs 9 Requirements By South African State-owned Entities

Author

Listed:
  • Maramaga Doctorly Mapulane

    (University of Johannesburg, South Africa)

  • Michael Adelowotan

    (University of Johannesburg, South Africa)

  • Garth Barnes

    (University of Johannesburg, South Africa)

Abstract

The global financial crisis in 2008 nearly resulted in a possible total collapse in the financial markets, which resulted in the development of new International Financial Reporting Standard (IFRS) 9: Financial Instrument. This study’s objective is to assess the quality information presented in the accounting policies in relation to IFRS 9: Financial Instruments, by the selected South African State-Owned Entities (SA SOEs) listed in Schedule 2 of the Public Finance Management Act (PFMA). The researchers have been interested in the factors of implementation and compliance of IFRS, though most of these studies are dominated by Asian and European countries with few for Africa. Using qualitative content analysis, the authors assessed the quality information in the accounting policies in relation to IFRS 9 against SOEs’ financial reporting. This study found that most of the SOEs applied the requirements of the IFRS 9 standard in terms of classification and measurement of financial assets and liabilities, though there is still room for improvement on the quality of the information provided by SOEs in their financial reports. The improvement on the quality of financial reporting is critical, as it could in turn help to build trust and confidence of investors to attract further investment.

Suggested Citation

  • 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.
    • Handle: RePEc:ejn:ejefjr:v:11:y:2023:i:3-4:p:121-130
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    References listed on IDEAS

    as
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    3. 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.
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    5. Mojca Gornjak, 2017. "Comparison of IAS 39 and IFRS 9: The Analysis of Replacement," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 6(1), pages 115-130.
    6. Beata Dratwińska-Kania & Aleksandra Ferens & Piotr Kania, 2023. "Transparent Reporting on Financial Assets as a Determinant of a Company’s Value—A Stakeholder’s Perspective during the SARS-CoV-2 Pandemic and beyond," Sustainability, MDPI, vol. 15(3), pages 1-20, January.
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