The Role of Applying International Accounting Standard No. 9 (Financial Instruments) in the Assessment and Management of Financial Risks in Sudanese Commercial Banks (A Field Study on a Sample of Commercial Banks Operating in El)

Abstract

The study examined the role of implementing International Accounting Standard (IAS) No. 9 on Financial Instruments in the assessment and management of financial risks within Sudanese commercial banks. The research problem was articulated through the following central question: What role does the implementation of IAS No. 9 play in improving the assessment and management of financial risks in Sudanese commercial banks? The study aimed to examine the contribution of applying IAS 9 on financial instruments to enhance the evaluation and management of financial risks in Sudanese commercial banks. To achieve this objective, the study tested the following hypothesis: The implementation of IAS No. 9 for Financial Instruments contributes to improving the assessment and management of financial risks in Sudanese commercial banks. The study employed the descriptive–analytical approach, and the Statistical Package for the Social Sciences (SPSS) was utilized to analyze the data collected from the field study. The findings yielded several conclusions and recommendations. One of the principal findings indicated that the implementation of the standard enhances the level of disclosure and transparency in financial reporting, thereby enabling management and investors to better understand the nature and extent of financial risks faced by banks. Based on these findings, the study recommended strengthening training and capacity-building programs for accounting and banking personnel in Sudanese banks to ensure effective compliance with and implementation of the requirements of IAS No. 9.