At 31 December N-1, the loss allowance of a loan of Ion SA was 90,000 (lifetime losses). At 31 December N, the condition of a significant increase in credit risk is no longer met, and the 12-month expected losses amount to 60,000. Record the entry adjusting the loss allowance.
- Lifetime loss allowance (N-1)
- 90,000
- 12-month loss allowance (N)
- 60,000