Accounting loss allowance on asset measured at FVTOCI

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February 27, 2019 at 3:10 am #506648

jjwl1000
Participant

Dear Sir

Hope you can resolve a confusion i have, how should i account the expected credit loss when asset is measured at FVTOCI. Does the changes in fair value includes the adjustment made on the expected credit loss. (e.g if fair value is down by $10, and ECL is also being adjusted downward by $5, do i split that $10 into $5 to P&L and $5 to OCI?)

Thanks

March 1, 2019 at 9:03 pm #507062

P2-D2
Keymaster

Hi,

Yes, the portion of the fall relating to the credit loss is taken through profit or loss, the remainder is taken through OCI.

Thanks
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