The impact of implementation of International Financial Reporting Standard IFRS 9 on the financial position and income statement for the listed companies listed on Damascus Securities Market

Abstract

This study aimed to explain the importance of implementation of IFRS 9 by highlighting the impacts of transition from IAS 39 to IFRS 9, by clarifying differences and the most significant adjustments between the two standards. The study concluded a series of results, that the implementation of IFRS 9 impacted on total assets as well as on net profits as a result of expected credit loss expenses resulting a change in equity. All of these results presented by IFRS 9 represent a valid positive step of clients' credit solvency, which reflected in reduction of borrowers risks to pay their obligations, and thus greater protection of depositors' funds for banks. The implementation of this standard also has a significant impact on the revaluations of financial instruments at fair value and the calculation of expected credit losses that would affect profits but would undoubtedly be safer for banks in the face of any subsequent defaults. All these enhances the accuracy of the financial position within the basis and concepts of disclosure and transparency of the financial statements of the companies listed on the Damascus Securities Market.