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Hello Sir, I would like to get a confirm from you is that the debt instrument measured at FVTOCI,the credit entry of expected credit loss is not against to the carrying amount of the financial asset(debt instrument) but goes to OCI? DR Pnl(impairment loss) CR OCI ?
Financial asset FVOCI
Portion of loss relating to credit loss goes to P&L
Any remaining loss to OCIIf not against the CA of FA, a credit entry of loss allowance will be created? same like allowance for bad debt?
No – you only need a separate loss allowance account if the asset is being carried at amortised cost
What if the Financial asset is not credit impaired which is not at the stage 3,the CA will not being affected by the loss allowance is only refers to the asset carried at amortised cost ? The other 2 categories(FVTOCI and FVTPL) will affecting the carrying amount of the asset when there is the expected credit loss?(credit entry)
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