Does OCI Presentation for Equity Financial Assets Matter?

One significant change in International Financial Reporting Standard (IFRS) 9 Instruments is how firms’ equity financial assets (EFA) are presented. The default EFA presentation at fair value through profit or loss (FVTPL); however, IFRS allows irrevocable of other comprehensive income (FVTOCI). Although FVTOCI the most common for both before and after 9, there a increase use FVTPL post via an improvement disclosure clarity about location. To assess impact presentation, we recalculate profitability ratios assuming different locations find some evidence differences firms. We also provide descriptive that behaviour vary between sectors firm size quartiles. This study expands literature on accounting provides timely response to post-implementation review by shedding light under 9.