The Impact of Applying Financial Reporting Standard No. 9 on the Financial Performance of Banks A case study of a Syrian Bank Byblos Bank – Syria

Abstract

This research aims to study the effect of applying IFRS 9 on the financial performance of banks, assets, liabilities and their impact on equity and income items.

The researcher studied the effect of applying Financial Reporting Standard No. 9 on Byblos Bank - Syria according to the descriptive analytical approach based on annual publication data from 12/31/2017 to 12/31/2019 by studying changes in classification and measurement on all the bank's balances and analyzing the financial statements of the bank during the last three years.

The final result of the study was that the shift to the application of IFRS 9 has a fundamental impact on the value of available for sale instruments, which makes their value zero due to reclassification, either investments held for trading or investments held to maturity in case they are debt instruments, and the value of financial instruments held. For trading, the extent of the impact depends on the quality of these tools.

It is also noted that the application of the standard in 2018 had a material impact on profitability, especially when it was applied retrospectively to the 2018 financial statements, while it had no material impact on the bank's liquidity and capital adequacy.