Impairment of financial assets – ACCA SBR

You have to set up an ALLOWANCE FOR INPAIRMENT account (which we used to call 'provision for doubtful debts') Initially the balance on the account will be 12 month credit losses - copy the number 'lifetime losses' and multiply by the percentage given If things go badly the balance on the account will be a much bigger number - lifetime credit losses- copy the number from the question The double entry for movements on the allowance account is the P&L