Modelling Of Provision Under New International Financial And Reporting Standard (IFRS 9)
نویسنده
چکیده
The impairment recognition in International Financial and Reporting Standard will change significantly in 2018 with IFRS 9. The reason of the update of the current IAS 39 standard is related to the global financial crisis. In this paper I am modelling the possible effect of the new standard to the allowance calculation compared with the previous standard. I set the focus on the two main dimensions of impairment recognition, namely time and amount. These characteristics of the introduced model in IFRS 9 are closely related to the economic cycle. During the analysis, I include the effect of macro environment to the allowance and highlight the expected changes and possible upcoming uncertainty of impairment estimation.
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