IAS 39 (also in German; sometimes also

Financial Instruments Recognition and Measurement; reformatted as IFRS 9 in 2010): Transparency accounting standard for banks, proposed by the International Accounting Standards Board (IASB). Mandatory adoption is scheduled for 2015. The criticism is that IAS 39 allows banks to report all financial instruments at fair value, including own liabilities. – As a result, the following may occur: – The deterioration of a bank’s own credit risk leads to a reduction in the value of its own borrowings. – If the value of the assets remains the same, this means an increase in the equity capital shown in the balance sheet. – So the bank’s solvency has improved because its own credit risk has deteriorated! – Incidentally, there are hardly any standards that have been amended and further developed as often as IAS 39. Leading experts therefore rightly call IAS 39 a “permanent construction site” (area requiring permanent improvement). The transformation into IFRS 9 at the end of 2009 eliminated major weaknesses of IAS 39 that had become apparent in the financial crisis following the subprime crisis. – See Derivatives, Enforcement process, Hedge accounting, International Accounting Standards, International Financial Reporting Standards, Disclosure requirements, Securities portfolios. – Cf. 2002 Annual Report of the Deutsche Bundesbank, p. 153, ECB Monthly Bulletin of February 2004, p. 77 ff, BaFin’s 2004 Annual Report, p. 66 ff. (here also on implementation problems) as well as the respective BaFin Annual Report, Deutsche Bundesbank’s Monthly Report of October 2005, p. 74 ff. (discussion also of market price valuation; p. 81 also presentation of IAS 30 and IAS 32), BaFin’s 2006 Annual Report, p. 55 f. (convergence project IASB and FASB; BaFin’s concerns), p. 57 f. (proposals of the Basel Committee on Banking Supervision), BaFin’s Annual Report 2009, p. 51 ff. (detailed explanation of the revision of IAS 39), BaFin’s Annual Report 2010, p. 66 f. (on accounting for financial instruments under IFRS 9), Annual Report
2011 of BaFin, p. 87 f. (alignment of impairment rules), 2012 Annual Report of BaFin, p. 75 f. (revision; new measurement category) as well as the respective Annual Report of BaFin, chapter “International”.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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