Identification the challenges and solutions for implementing the Receivables Expected Credit Loss Model of Banks based on IFRS 9

One of the most important weaknesses of IAS 39 (International Accounting Standard 39) was the recognition of impairment losses at the time of occurrence, that leading to the later and less recognition of credit losses. In this regard, IFRS 9 (International Financial Reporting Standard 9) with a forward-looking perspective, presented a the expected credit loss model for banks receivables. According to this model, receivables credit loss on should start since the of granting the facility and be adjusted over the life of the facility with respect to the extent of the significant change in the level of credit risk. Given the central bank's requirement for banks to implement IFRS 9, the implementation of the receivables expected credit loss model based on IFRS 9 requires identification of the challenges and solutions for implementing this model by banks. For this purpose, in-depth interviews were conducted with 21 experts of the banking system such as financial assistants, financial managers and accounting department staff to snowball method in years 2018 and 2019. Using qualitative content analysis method, 10 themes and 75 categories were extracted and categorized into the framework of IFRS 9 implementation challenges and solutions and reviewed and approved according to expert opinion. The most important achievement of this study can be to identify the implementation obstacles and provide solutions to implement the receivables expected credit risk loss model based IFRS 9 to banks, which can minimize the negative consequences of implementing IFRS 9 to savings in time and expense for Iranian banks.