Impairment of Financial Assets

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Comprehensive Income, a lease receivable, a contract asset or a loan commitment and a financial guarantee contract to which the impairment requirements apply. This Impairment model is applicable to - * Investments in debt instruments measured at amortised cost or FVTOCI; * All loan commitments Not measured at FVTPL; * Financial Guarantee Contract which are not accounted for at FVTPL; and ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d present value of cash flows that entity expects to receive discounted using original EIR. The objective of the impairment requirements is to recognise lifetime expected credit losses for all financial instruments for which there have been significant increases in credit risk since initial recognition - whether assessed on an individual or collective basis - considering all reasonable and suppor....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ease in credit risk on the instrument since its initial recognition. * Simplified Approach: Recognise at each Reporting date, Impairment Loss allowance based on LIFETIME ECL. This approach is mandatory for: * Trade receivables * Any contractual right to receive cash/another Financial Asset that results from transaction within IND AS 115. * Purchased/ originated credit impaired financial....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....onment of the borrower. * Significant changes in the value of the collateral OR quality of third-party guarantees or credit enhancements. * Reductions in financial support from a parent entity. * Significant changes in the expected performance and behaviour of the borrower. Calculation of Impairment Amount (Loss allowance/Expected Credit Loss):- * Method for calculation of Impairment loss....