International GAAP 2020

Chapter 51Financial instruments: Impairment

• 1 INTRODUCTION
  • 1.1 Brief history and background of the impairment project
  • 1.2 Overview of the IFRS 9 impairment requirements
  • 1.3 Key changes from the IAS 39 impairment requirements and the implications
  • 1.4 Key differences from the FASB's standard
  • 1.5 The IFRS Transition Resource Group for Impairment of Financial Instruments (ITG) and IASB webcasts
  • 1.6 Other guidance on expected credit losses
• 2 SCOPE
• 3 APPROACHES
  • 3.1 General approach
  • 3.2 Simplified approach
  • 3.3 Purchased or originated credit-impaired financial assets
• 4 IMPAIRMENT FOR CORPORATES
• 5 MEASUREMENT OF EXPECTED CREDIT LOSSES
  • 5.1 Definition of default
  • 5.2 Lifetime expected credit losses
  • 5.3 12‑month expected credit losses
  • 5.4 Probability of default (PD) and loss rate approaches
    • 5.4.1 Probability of default (PD) approach
    • 5.4.2 Loss rate approach
  • 5.5 Expected life versus contractual period
  • 5.6 Probability-weighted outcome and multiple scenarios
  • 5.7 Time value of money
  • 5.8 Losses expected in the event of default
    • 5.8.1 Credit enhancements: collateral and financial guarantees
      • 5.8.1.A Guarantees that are part of the contractual terms
      • 5.8.1.B Guarantees that are not part of the contractual terms
    • 5.8.2 Cash flows from the sale of a defaulted loan
    • 5.8.3 Treatment of collection costs paid to an external debt collection agency
  • 5.9 Reasonable and supportable information
    • 5.9.1 Undue cost or effort
    • 5.9.2 Sources of information
    • 5.9.3 Information about past events, current conditions ...