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credit impaired assets

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › credit impaired assets

  • This topic has 2 replies, 3 voices, and was last updated 3 years ago by Stephen Widberg.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • August 2, 2021 at 2:54 pm #630160
    Jiya024
    Member
    • Topics: 168
    • Replies: 56
    • ☆☆☆

    professor can we say that assets whose credit risks have increased significantly are credit impaired???

    and also assets which are credit impaired, we use LIFETIME expected credit losses?

    August 2, 2021 at 3:10 pm #630163
    aarti2407
    Member
    • Topics: 36
    • Replies: 8
    • ☆

    Dear tutor i have a doubt related to Jiya024’s question. The method to calculate the expected credit losses remains the same, whether the asset is credit impaired or credit risk has increased significantly/is still low. In all 3 conditions same way of calculating credit loss, as the PV of difference between contractual cash flows and the cash flows entity expects to receive, true tutor?

    August 3, 2021 at 4:45 pm #630285
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3409
    • ☆☆☆☆☆

    If you are at Stage 2 or 3 – lifetime losses

    Clue for Stage 2 is ‘credit risk has increased’

    Judgement call

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