Henkel/Gruber (WPg 2.2019)

https://www.idw.de/idw-verlag/wpg/themen-vorschau-heft-2-2019--erscheinungstermin--15-01-2019-/22586

With the publication of the interim reports as of March 31, 2018 (Q1/2018), empirical data on the first-time application of IFRS 9 (Accounting for Financial Instruments) is available for the first time. The subject of the article in German is the analysis of the Q1/2018 interim reports of the DAX 30 companies. The analysis focused on three aspects: a) the extent of reporting on first-time adoption of IFRS 9, b) the amount of IFRS 9 equity adjustment effects and c) the migration paths in categorisation, especially the question of the extent to which fair value measurement has increased as a result of the new standard.

Result: A wide range can be seen in the reporting on the transition to IFRS 9. Both equity reducing and equity increasing conversion effects are observed. The absolute figures range between +€101 million and -€391 million and the equity ratio between +0.13% and -1.33%. In most cases, the major part of this equity adjustment effect is attributable to the impairment part. The IFRS 9 equity conversion effects can predominantly be classified as insignificant. An analysis of the migration paths of the new IFRS 9 categorisation shows on the basis of ten companies that for an average of 93.4% of the financial assets of these companies the valuation does not change as a result of the new categorisation. The remaining financial assets are migrated to the category at fair value through. profit or loss, which is likely to make the income statement more volatile and the forecast of net income more difficult.