IFRS 9 introduces new impairment rules in order to respond to the complaints about the complexity and lack of efficiency of the standard IAS 39. The main issue was the delayed recognition of credit losses on loans and other financial instruments that represent a significant financial component for any bank. This new standard has been mandatory since 2018.
This thesis is talking about the a very essential dilemma which is the earnings management practices especially In the banking industry in EGYPT concerning the implementation of the new methodology of the expected credit losses rather than losses already incurred according to IAS 39, and to be more precise the researcher has put into practice the various theoretical points in a field study containing the Egyptian commercial banks working inside EGYPT.

Overall, and after testing the hypotheses the researcher finally concluded that the earnings management practices in the Egyptian banks are positively affected by the new methodology adopted by IFRS 9 and its implementation.