Expected Credit Loss

Key takeaways from the RBI notification dated 12th Nov 2021 The Reserve Bank of India vide its notification dated 12th Nov 2021 regarding Prudential norms on Income Recognition, Asset Classification...

How is the expected credit loss measured ECL measurement criteria An entity shall measure expected credit losses of a financial instrument in a way that reflects: an unbiased and probability-weighted amount that...

Approaches for assessing credit risk Drivers of expected credit loss The Standard explains that an entity may apply various approaches to determine whether the credit risk on a financial instrument...

Simplified Approach for ECL for trade receivables Trade receivables, contract assets & lease receivables An entity shall always measure the loss allowance at an amount equal to lifetime expected credit...

What is meant by significant increase in credit risk Significant increase in credit risk (SICR) At each reporting date an entity shall assess whether the credit risk on a financial...

What is the new Expected Credit Loss Model What is the new ECL Model? Ind AS 109 is the converged version of IFRS 9, as it stood as of 24...