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Hi,
I have some queries re the above topic:
1. Are 12 month ECL recorded against the carrying amount of the asset on initial recognition?
2. For assets held at FVOCI – how are credit losses recorded? I presume they do not impact the carrying amount?
Thanks
1. Set up a separate allowance account and net it off the asset account in the financial statements.
2. Just one account – the asset. The FV will take into account the credit losses. If the fall in FV is because of credit losses, the Dr is P&L not OCI.
One question per post please. 🙂
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