Skip to content
Sign inRegister

Ask the Tutor ACCA SBR

credit impaired assets

JJiya0245y ago
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?
Aaarti5y ago#1
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?
stephenwidbergstephenwidbergTutor5y ago#2
If you are at Stage 2 or 3 - lifetime losses Clue for Stage 2 is 'credit risk has increased' Judgement call
Sign into reply to this topic.