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Experiences Relating to the Introduction of IFRS 9 In the Banking Sector

Since 2018, most credit institutions have been required to prepare IFRS financial statements. The transition was expected to result in improved comparability and a reduction in administrative burdens. Our study investigates whether these expectations are borne out by the experiences of survey respondents. Building on the results of earlier surveys and our own observations, in the summer of 2018 we conducted a survey to assess the banks’ experiences relating to the introduction of IFRS 9. This research adds nuance to our previous conclusions that the success of the transition is assured by the availability of Hungarian-language literature, the setting of realistic deadlines and use of the appropriate GAP analysis, while difficulties are presented by the shortage of relevant skills and the high one-off changeover costs. We observed significant differences depending on whether a given bank had already prepared IFRS individual financial statements before the transition to IFRS 9. The greatest challenge overall was the immaturity of the IT system, while the most important accounting challenges included the impairment model, SPPI tests and taxation issues. Based on the responses, the opinions of the surveyed banking professionals did not confirm the expected benefits of the introduction of IFRS and IFRS 9; they regarded the drawbacks as having a greater weight. JEL codes: G21, G23, G28, M41