CERTYNEX IFRS ACADEMY

At year-end, the finance team of Banque Alcor allocates four tasks relating to its Stage 2 loans (case facts). Which of these tasks is an IFRS 7 disclosure requirement, rather than the measurement provided for by IFRS 9?

Deciding on which date the credit risk of the loans increased significantly since their initial recognition in the accounts.

Calculating, with a probability-weighted model, the lifetime expected credit loss on the Stage 2 loans at the reporting date.

Drafting the note that explains how credit risk management practices relate to the measurement of expected losses.

Determining, for each loan in the portfolio, the amount of the loss allowance to be recognised at the end of the reporting period.