Consequences of IFRS Implementation In The Iranian Banking Industry

Identifying the possible consequences of implementing International Financial Reporting Standards (IFRS) in the Iranian banking industry before the implementation of these standards is of great importance due to the nature of the financial reporting environment of banks in Iran, so the purpose of this article is to identify these consequences. In this study, after systematic Reviews, survey questions (including 45 items) were designed and sent to four groups including banks, bank Independent auditors, supervisory institutions, academic experts and researchers in order to collect expert opinions. Received responses (with a return rate of 90%) Were analyzed using a fuzzy logic method. The results show that the main consequences of implementing IFRS will be the implementation of Expected Credit Loss Measurement (ECL) and Fair Value Accounting (FVA) models. Although the factors limiting the implementation of IFRS in Iran affect the relevance and reliability of measurement models, from the respondents' point of view, preparing financial reports based on fair values versus historical cost can provide more relevant information to investors. In addition, with increasing asset transparency, the likelihood of facing a crisis of increased transparency in financial reporting due to the structure of the political economy increases. Also, due to some features of banks' financial reporting environment such as economic instability, weak corporate governance and lack of knowledge and professional judgment skills, it is likely that the Procyclicality effects of ECL and FVA models will increase.