The effect of IFRS 9 on comparability

Fontes, Joana C. and Panaretou, Argyro and Shakespeare, Catherine (2025) The effect of IFRS 9 on comparability. Accounting and Business Research. ISSN 0001-4788

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Abstract

This study examines the impact of IFRS 9 adoption on accounting comparability in the banking industry. Our findings indicate that overall the adoption of IFRS 9 is associated with a decrease in accounting comparability. The adoption of the expected credit loss model is identified as the primary driver of reduced comparability, while we provide some evidence that IFRS 9 classification and measurement framework and IFRS 9 hedge accounting rules are associated with an increase in comparability. Although we document a decline in comparability during our sample period, we do not draw conclusions on the long-term impact of the expected credit loss model on comparability or its effect on the informativeness of accounting numbers.