CERTYNEX IFRS ACADEMY

An analyst prepares a note on the boundary between IFRS 9 and IFRS 7 for expected credit losses. Which of his sentences is wrong?

IFRS 7 asks the entity to explain how credit risk management practices relate to the measurement of expected losses.

The measurement of expected credit losses and the definition of the stages fall under IFRS 9, not under the IFRS 7 disclosures.

To find the method for measuring expected credit losses, look in IFRS 7, which details it.

IFRS 7 complements IFRS 9 by requiring information about the loss allowance for credit losses presented by the entity.