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Impairment of Financials Asset

This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.

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November 9, 2017 at 8:11 am #414940
royalringo
Member
- Topics: 24
- Replies: 5
Hi sir,
Would you like to explain about the different between 12 month ECL and Lifetime ECL? I not really understand on what is the purpose of categorising them, what is the effect on financial statement between these two methods?
November 12, 2017 at 9:53 am #415348
P2-D2
Keymaster
- Topics: 4
- Replies: 7217
Hi,
Have you looked at the accounting treatment of each? It is quite literal in that the 12-month credit losses take account of the next 12-months, whilst lifetime look beyond that period.
Thanks
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