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The effect of changes in the accounting for loan loss provisions on managers' decisions
Thesis (PhD (Accounting Sciences))--University of Pretoria, 2022.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2023
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| _version_ | 1867613524801355776 |
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| access_status_str | Open Access |
| author2 | Badenhorst, Wessel |
| author_browse | Badenhorst, Wessel |
| author_facet | Badenhorst, Wessel |
| collection | Thesis |
| dc_rights_str_mv | © 2022 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Thesis (PhD (Accounting Sciences))--University of Pretoria, 2022. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/90276 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:37:31.320Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/90276 The effect of changes in the accounting for loan loss provisions on managers' decisions Badenhorst, Wessel maryke.scheun@up.ac.za Rupert, Tim Scheun, Maryke UCTD Loan loss provision Earnings management Managerial behaviour IAS 39 IFRS 9 IFRS 9 Expected Credit Loss Model Banking Accounting Standards Economic and management sciences theses SDG-08 Economic and management sciences theses SDG-16 Thesis (PhD (Accounting Sciences))--University of Pretoria, 2022. This study provides evidence of the effect of the change in the accounting for loan loss provisions from allowing low levels of professional judgement, to a new standard that permits managerial judgement and discretion in the measurement and application of loan loss provisions. The International Financial Reporting Standard (IFRS) 9 introduces an ‘expected credit loss’ model that takes into account reasonable and supportable forward-looking information. Under IFRS 9 it is no longer necessary to have ‘objective evidence’ of impairment before a provision is recognised as was the requirement of the International Accounting Standard (IAS) 39. The change to greater discretion in measuring loan loss provisions makes this event particularly useful to examine the impact of accounting standards that allow more judgement and discretion on managerial behaviour. I used an experiment to examine whether the expected credit loss model of IFRS 9 leads to an increase in earnings management compared to the incurred credit loss model of IAS 39. Using a banking environment setting, the experiment manipulated the presence versus absence of earnings management incentives and IFRS 9 versus IAS 39 accounting standard. I contributed to the literature by demonstrating that the change from IAS 39 to IFRS 9 achieved the objective of allowing more managerial discretion without causing increased earnings management. UCDP Grant to cover PHD-relates costs cb2026 Accounting PhD (Accounting Sciences) Unrestricted SDG-16: Peace, justice and strong institutions SDG-08: Decent work and economic growth 2023-03-30T10:25:37Z 2023-03-30T10:25:37Z 2023-04 2022 Thesis * A2023 http://hdl.handle.net/2263/90276 https://doi.org/10.25403/UPresearchdata.22032395.v1 en © 2022 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Loan loss provision Earnings management Managerial behaviour IAS 39 IFRS 9 IFRS 9 Expected Credit Loss Model Banking Accounting Standards Economic and management sciences theses SDG-08 Economic and management sciences theses SDG-16 The effect of changes in the accounting for loan loss provisions on managers' decisions |
| title | The effect of changes in the accounting for loan loss provisions on managers' decisions |
| title_full | The effect of changes in the accounting for loan loss provisions on managers' decisions |
| title_fullStr | The effect of changes in the accounting for loan loss provisions on managers' decisions |
| title_full_unstemmed | The effect of changes in the accounting for loan loss provisions on managers' decisions |
| title_short | The effect of changes in the accounting for loan loss provisions on managers' decisions |
| title_sort | effect of changes in the accounting for loan loss provisions on managers decisions |
| topic | UCTD Loan loss provision Earnings management Managerial behaviour IAS 39 IFRS 9 IFRS 9 Expected Credit Loss Model Banking Accounting Standards Economic and management sciences theses SDG-08 Economic and management sciences theses SDG-16 |
| url | http://hdl.handle.net/2263/90276 https://doi.org/10.25403/UPresearchdata.22032395.v1 |