In the context of its investigation on the potential effect of IFRS 9 Financial Instruments on long-term investments, EFRAG commissioned a literature review to an independent international academic team. The independent literature review by the international academic team will form part of the evidence that EFRAG will consider in its research project.
The review addresses the following specific questions:
•How does presentation format of the financial information influence investors’ behaviour?
•How value relevant are OCI and AFS related gains and losses?
•What are the pros and cons of recycling?
•How do accounting requirements influence investment strategies?
•What factors influence long-term investors’ investment strategies?