The Impact of Reclassification Accordance with International Financial Reporting Standard (IFRS 7) in Enhancing Value Relevance

Abstract

The research aims to identify the reclassification of financial statement items according to the International Financial Reporting Standard IFRS.7 and its impact on enhancing the value relevance of accounting information for the research sample banks. To achieve the research objective, the descriptive analytical approach was used using the Statistical Package for Social Sciences (SPSS) to analyze data and test hypotheses. A questionnaire was distributed to amounting to 30 questionnaires, of which 27 were valid for analysis. The most important conclusions were that there is a significant impact on enhancing the value relevance of accounting information through reclassifying financial statement items according to IFRS.7. One of the most important recommendations was the necessity for all local banks to implement the reclassification process for financial statement items so that the accounting information is of high quality, comparable, useful, and contributes to enhancing the value relevance of accounting information and raising its quality.