Authors: Dimitrios Balios, Nikolaos Eriotis, Theodoros Kounadeas, Dimitrios Vasiliou

Title: Theoretical considerations about implementation of IFRS in the banking industry.

Abstract

IASB introduced IFRS 9, as substitute of IAS 39, to improve mechanisms of classification and measurement of Financial Instruments, deemed as one of the main causes triggering the financial crisis. The financial crisis, which started in 2008, led regulators to believe that accounting standards contributed to financial stability or instability. However, the primary goal of accounting standards and the financial statements produced under them is not to contribute to financial stability, but to provide information for investors to make a wide range of decisions. Moreover the information that accounting standard-setters consider relevant for investors may not be the same as that considered relevant by prudential regulators. To sum up, the study analyses theoretically the impact of accounting rules on the quality of the information given by the financial statements of entities which operate in European banking industry.