Expected loss approach Vs incurred loss approach

Hello dear tutor

According to ACCA’s article if we use incurred loss approach(under IAS 39) we must only consider past events but if we use the new standard (IFRS 9),we must use the expected loss approach by considering past events,current position and future expected events…

Could you please take a look at this example and tell me the wrong parts…

Q:On 1.1.2000 a company has a portfolio of $50m financial assets which will be matures 10 years later and carry and interest rate of 16%.it estimates that no loans will default in the first 2 years,but from the 3 year loans will default and as a consequence annual rate decreses to 9%.if the loan default as expected the rate of return from the portolio will be approximately 10%.(annuity factor of 10% for 7 years=4.87)

What are the impacts on financial statements UP to year ended 31.12.2003 if the company uses
a)incurred loss approach
b)expected loss approach

Answer:
a)impairment for:
impairment in yr=0
impairment in yr2=0
impairment in year 3=50*(0.16-0.09)=0.35

b)impairment for
Yr 1=0
Yr 2=0
Yr 3=impairment for yr3+P.V of of 0.35 discounted at 10%(expected rate of return)=0.35+(0.35*4.87)=
2.05

*I use 10% as discount rate because in the article it is said that:
“In the absence of further information for discount rate,use Effective rate of asset”….
Maybe I should use 9%???

I am really sorry if my question is too long but I really get confused and I know that this is an important part as it is a new topic.

Thank you