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28/03/2018 - Independent academic literature review on IFRS 9 and long-term investment

​In the context of its investigation on the potential effect of IFRS 9 Financial Instruments ​on long-term investments, EFRAG commissioned a literature review to an independent international academic team. The literature review is part of the evidence that will be considered and complements EFRAG's Discussion Paper.

​In March 2018, EFRAG published a Discussion Paper Equity Instruments – Impairment and Recycling to gather constituents' views on recycling and impairment of equity instruments designated at fair value through other comprehensive income to develop its technical advice to the European Commission. The Discussion paper is open for comments until 25 May 2018. To download the Discussion Paper please click here.

The independent literature review by the international academic team will form part of the evidence that EFRAG will consider in its research project.

The review addresses the following specific questions:

  • How does presentation format of the financial information influence investors' behaviour?
  • How value relevant are OCI and AFS related gains and losses?
  • What are the pros and cons of recycling?
  • How do accounting requirements influence investment strategies?
  • What factors influence long-term investors' investment strategies?

To access the review, please click here.