Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 26, 2010 erstellt
Beschreibung:
This paper analyzes the determinants and consequences of using a new option under IFRS to reclassify financial instruments from fair value categories to categories measured at cost or amortized cost. Many critics blamed fair value accounting as a reason or at least a catalyst of the ongoing financial crisis. The IASB amended the rules of fair value accounting for financial instruments in order to prevent further asset write-offs. For a sample of major European banks, we find that the use of the option is influenced by banks' size, profitability, analyst coverage and by the law tradition of their home country. We also find some evidence that banks using this option face higher bid-ask spreads after disclosing their decision