Regulation and disclosure about financial instruments: Evidence on financial reporting in the Portuguese banking sector

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Finance from the NOVA – School of Business and Economics

Financial instruments, and the underlying accounting regulation and reporting disclosure in the financial statements of banks, have been subject to great uncertainties and major changes. This paper aims at analyzing the impacts of the new regulation about financial instruments and to assess their current disclosure in the annual reports in the Portuguese banking sector. The sample consists of fourteen banks in the different sectors. This research reveals that IFRS 9 will turn the accounting of financial instruments more transparent and easy to compare among banks and that currently disclosure are related to the characteristics of banks and the economic cycle.