IFRS 9Chapter 9Lesson 2
Measuring the expected credit loss
Step 1 of 7Learning objectives
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The expected credit loss is an unbiased, probability-weighted amount that takes into account the time value of money and reasonable and supportable information; the maximum period is contractual, with an exception for revolving facilities.
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Learning objectives
- State the characteristics of an expected credit loss.
- Calculate a scenario-weighted expected loss, then discount it.
- Record the corresponding loss allowance.
- Determine the maximum period of exposure and the case of revolving facilities.