IASB's independence in the due process: an examination of interest groups’ influence on the development of IFRS 9

Samindi Hewa, Rajni Mala, Jinhua Chen

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

This mixed‐method study examines whether and how the International Accounting Standards Board (IASB) was influenced by interest groups during the development of the expected credit loss (ECL) model for IFRS 9 Financial Instruments. Content analysis of 327 comment letters revealed that the IASB was influenced. However, Fisher's exact test and chi‐square goodness‐of‐fit test showed that, to a greater extent, the influence was not significant. Furthermore, qualitative analyses of the arguments put forward by interest groups showed that as a result of interest groups’ inputs, accounting requirements for the ECL model were made more operational, less complex and potentially productive of more comparable financial information.
Original languageEnglish
Pages (from-to)2585-2615
Number of pages31
JournalAccounting & Finance
Volume60
Issue number3
Early online date21 Dec 2018
DOIs
Publication statusPublished - 1 Sep 2020

Keywords

  • Expected credit loss model
  • IFRS 9
  • Impairment
  • Influence
  • Interest group

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