Studying the Impact of IFRS 9 and the Corona Pandemic on the Qualitative Characteristics of Accounting Information with Applying to Banks Listed on the Egyptian Stock Exchange

This study aims to evaluate the effects of post-implementation of the IFRS 9 in international firms and banks (theoretically) and Listed Egyptian Banks starting from January 1st. 2019 (Empirically). Precisely, the study focused on the impact of implementation on the main qualitative characteristics of financial reporting generated by the standard, i.e., increasing of relevance and faithful representation as considered the main characteristics in new international conceptual framework (2018). Mainly due to the implementation of new rules to measure and classify financial instruments, in addition to the expected losses-based provisioning model, and how did banks accommodate their accounting policy to mitigate those unfavorable effects.
The researcher evaluated the quarterly mandatory effects of 13 banks listed on the Egyptian Stock Exchange and subject to the supervision of the Central Bank of Egypt (CBE) during the period from 2016-2017 (before applying the standard), 2018-2019 (after applying the standard) and 2020 (considering combating the Corona pandemic). The study found that there is a high positive effect of actual application on the relevance of accounting information measured by stock prices after application. As well as the actual impact on the faithful representation (reliability in advance) measured with testing the significance of theoretical hypotheses that financial assets =+1 and liabilities coefficients = -1. The study also found that the economic dimension resulting from combating the Corona virus, COVID 19, affects that relationship and its strength, especially in small-sized banks due to the weakness of their solvency and their ability to face financial crises.