Banks, financial statement users, and accounting standard setters have long disagreed on the informativeness of banks' statements of cash flows (SCFs) and there is a lack of relevant evidence in the literature. This paper examines the informativeness of the SCFs of U.S. commercial banks in two...

From 2005, IAS 39: Financial Instruments: Recognition and Measurement required UK banks to support loan-loss provisioning with objective evidence that losses had been incurred, and thereby eliminated general loan-loss provisioning. It has been argued that the IAS 39 incurred-loss method of...

We examine whether the use of fair value measurement (FVM) for bank assets reduces information asymmetry among equity investors (bid–ask spread) and how this is affected by the recognition of own credit risk gains and losses (OCR). Our findings show that FVM of assets is associated with...