IFRS 9 Measuring Expected Credit Loss

Saket Modi

In this video, Saket gives an overview of the expected credit loss model and three different approaches to assessing impairment.

Accounting fundamentals

Overview

In this video, Saket introduces the three key approaches to assessing the expected credit loss - the first is the general approach, which requires an entity to track changes in credit risk, the second is the simplified approach, which does not require an entity to track the changes, but rather requires the entity to recognise a loss allowance based on lifetime expected credit losses at each reporting date from obligation, and lastly the purchased/originated credit impaired approach.

Key learning objectives:

What is the scope of IFRS 9 impairment?
Identify and explain the general, simplified and credit-impaired approaches
What indicators does IFRS 9 use to track significant increases in credit risk and default?
Discuss the reporting rules for loan commitments and financial guarantees

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Summary

Expert

Saket Modi

Saket is a financial trainer and consultant based out of London. He specialises in advanced accounting, financial reporting and financial analysis, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) and Financial instruments.