| Information | In this session we will look at Impairment loss model and principles, in terms of the following:
Brief introduction of the forward-looking model
What is within the scope of IFRS 9
Definitions (credit losses, expected credit losses, 12-month ECL and lifetime ECL)
ECL Model -General approach focusing on the “3-stage” process.
The credit risk satellite model
ECL Model - Simplified approach under the practical expedient
A 5-step model to devise the ECL for trade receivables under the provision matrix
An brief look at the financial statements of companies to understand the practicability of the Simplified approach in a realistic context
Roll rate model
The definition of default
Exception 1 to the ECL model, namely for Purchased or Originated credit-impaired (POCI) financial assets
Exception 2 to the ECL model, namely for Low credit risk (LCR) financial assets
ECL model applied to Debt Instruments
Qualitative/quantitative disclosures about information on amounts arising from ECLs. |
