Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 206

Full Length Research Paper

Trend analysis of the immediate post-adoption effects of IFRS 9: An emerging market evidence

Taylor Daniel
  • Taylor Daniel
  • Universit√© Clermont Auvergne, CleRMa 11 bd. Charles de Gaulle, Clermont-Ferrand 63000, France.
  • Google Scholar

  •  Received: 16 March 2022
  •  Accepted: 11 August 2022
  •  Published: 31 December 2022


IFRS 9 is a global standard whose impact is expected to vary depending on banks’ credit risk approach, size, and country of incorporation. Therefore, it is imperative to study the implementation effects of IFRS 9 in all regions in which IFRS 9 has been implemented. This paper examines the first-time post-adoption effects of IFRS 9 in the Ghanaian banking sector and addresses the gap in empirical academic literature from an African context regarding the implementation effects of IFRS 9. The study found that regulatory capital was adversely affected as a result of an increase in impairment charge at the transition to IFRS 9 on 1st January, 2018. Loan loss provision increased due to timely recognition of expected credit losses. Despite the peculiar context of this study, the results are generally consistent with theoretical and empirical literature from the European region. The findings suggest that a proper regulatory and supervisory framework, as well as consistent application of IFRS 9 will be essential to leverage optimal benefit from the standard.


Key words: IFRS 9, expected credit loss, regulatory capital, impairment charge, banks.