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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Impairment model in IFRS 9
The above standard requires an ECL that is equivalent to 12 months upon initial recognition, provided the financial asset is within the scope of the impairment model.
Just say such a financial asset is recognized on June 01, 2019, should the ECL allowance be recognized at this date, or at reporting date December 31, 2019?
Thanks sir.
Hi,
The ECL is calculated for the twelve months from 1 June 2019, and shown against the value of the financial asset.
Only if there is significant evidence of a deterioration will there then be a change at the reporting date.
Thanks
Thank you sir.