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Impairments of Greek government bonds under IAS 39 and IFRS 9: A Case Study

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  • Gebhardt, Günther

Abstract

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.

Suggested Citation

  • Gebhardt, Günther, 2015. "Impairments of Greek government bonds under IAS 39 and IFRS 9: A Case Study," SAFE White Paper Series 30, Leibniz Institute for Financial Research SAFE.
    • Handle: RePEc:zbw:safewh:30
    DOI: 10.2861/787665
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    References listed on IDEAS

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    Keywords

    IFRS 9; credit losses; government bonds;
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