The Impact of Accounting Measurement and Disclosure According to the Model of Expected Credit Losses on the Quality of Financial Reports in Commercial Banks: An Applied Study

Global banks have witnessed a major shift with the implementation of IFRS 9, which adopted the Expected Credit Loss (ECL) model instead of the incurred loss model, aiming to enhance the quality of accounting information and strengthen risk management. This study aimed to measure the impact of accounting measurement and disclosure of expected credit losses on the quality of financial reporting in 15 Egyptian commercial banks during the period 2018–2023, while also analyzing the differences in application among banks. The results revealed a positive relationship between the application of IFRS 9—specifically in terms of disclosure and measurement of expected credit losses—and the quality of financial reporting. The findings also indicated significant variation among banks in the level of disclosure and measurement practices. The study recommended that the Central Bank of Egypt enhance its supervisory role over the implementation of IFRS 9, standardize the application mechanisms, and develop banks' capabilities in objectively estimating credit losses, in order to ensure transparency and stability in the banking sector.