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Le rôle des acteurs dans la normalisation comptable internationale : Le cas de la norme IFRS 9

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  • Denis Cormier

    (CIFO - Chaire d?information financière et organisationnelle - ESG)

  • Charlotte Beauchamp

Abstract

This study deals with the accounting standardization of financial instruments and, more specifically, the replacement of IAS 39 with IFRS 9. One of the aims of this study is to determine whether certain characteristics of firms can affect their propensity to participate in the standardization process. We first analyzed comment letters sent to the IASB regarding the third exposure draft entitled "Classification and measurement: specific changes to IFRS 9". 147 letters were analyzed, although we focused our analyses on the group of preparers of financial statements, i.e. companies. We observe little difference in responses between the various groups of respondents. Our results based on a logit regression analysis are as follows: 1) Firms that responded to the first exposure draft have a greater propensity to respond to the second one. Assuming that the costs of the first response are the highest, it is fairly normal that firms that have already responded to an exposure draft are more likely to respond to subsequent Exposure Drafts on the same matter; 2) firms that have reclassified certain financial instruments during the 2008 financial crisis have a greater propensity to respond. Building on Heem et Dufour (2012), it is not surprising that firms that have previously used this practice are those with the greatest propensity to participate in the standardization process. Referring to this study, it appears that firms that chose to reclassify certain financial instruments were less profitable and less capitalized than those that did not. The objective of the reclassification was therefore probably to avoid recognizing losses in the income statement by allowing these losses to be recognized in the comprehensive income. By defining and classifying the category "at fair value through other comprehensive income", the Exposure Draft effectively avoids the recognition of losses in net income; 3) Firms with unrealized investment gains in the comprehensive income are less likely to respond. The higher the amount of unrealized gains, the more firms would want to retain the ability to transfer these amounts to other comprehensive income as permitted by the proposed standard. In doing so, there will be less volatility in net income; 3) Debt (debt / equity) is positively related to the propensity to respond to the exposure draft. Given that the Exposure Draft proposes to change the accounting for financial liabilities, it is possible that companies with more debt were willing comment; 4) the most profitable firms (ROA) seem more inclined to respond. This might be because the category of accounting for "available-for-sale" financial assets is desirable because it limits the volatility of the net income and thus of the ROA.

Suggested Citation

  • Denis Cormier & Charlotte Beauchamp, 2016. "Le rôle des acteurs dans la normalisation comptable internationale : Le cas de la norme IFRS 9," Post-Print hal-01902328, HAL.
    • Handle: RePEc:hal:journl:hal-01902328
    Note: View the original document on HAL open archive server: https://hal.science/hal-01902328
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    References listed on IDEAS

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