Title: Forward-looking approach in the accounting of financial instruments: case study of Slovenian Pension Company

Authors: Mojca Gornjak

Addresses: International School for Social and Business Studies, Mariborskacesta 7, 3000 Celje, SI, Slovenia

Abstract: The replacement of IFRS standard for financial instruments has an impact on new definitions of business models, on new forward-looking approach for measurement of financial instruments, like equities or bonds and on new loss allowance provisions with lowering the figures. The comparison between IAS 39 and IFRS 9 is essential because of the disclosures of the compared figures in the annual reports. The replacement is actual in more than 140 countries, where the organisations do the accounting under IFRS. We expect the innovativeness in accounting in the sense of implementing future expectation not only in daily operations but also in strategic levels. The model of expected credit losses (ECLs) affects organisations' performance as we shown in the case study research. The contribution to the management accounting is in defining the approach of the replacement of the IAS 39 with IFRS 9 and calculating the effects on financial statements and shareholders' values.

Keywords: innovation in accounting; IFRS 9; IAS 39; business model; expected credit loss; ECL; SPPI test; financial statements.

DOI: 10.1504/IJIL.2019.100513

International Journal of Innovation and Learning, 2019 Vol.26 No.1, pp.27 - 43

Received: 27 Jun 2018
Accepted: 05 Sep 2018

Published online: 29 Jun 2019 *

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