Impairment of financial assets

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February 2, 2021 at 8:26 am #608825
mariamohi
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Can you please tell me the debits and credits of the illustration in notes?
February 2, 2021 at 9:44 am #608832
Stephen Widberg
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When loan is made

Dr P&L Cr Allowance 4000

One year later

Dr P&L Cr Allowance 200

Stage 2

Dr P&L Cr Allowance with 200,000 less 4,200

Stage 3

Dr Allowance Cr Loan asset 200,000

Bear in mind that an allowance account is what we used to call a provision
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