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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Unwinding credit losses
Why would we unwound credit losses and why do we keep a loss allowance pot for those financial assets at amortised cost and not for those via OCI.
Thanks
No loss allowance for FVTOCI because asset already measured at fair value
Unwinding credit losses is about time value of money – I know a credit loss is not a liability, but pretend in your mind that it’s a bit like a liability
Again thank you for the clarity
Have a great day