Improved credit risk

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November 7, 2017 at 12:12 pm #414671
abdulbasit16
Member
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Sir IFRS 9 says that after recognition of lifetime expected losses if the credit risk position is improved we reinstate the 12-month expected losses criterion. Does this mean we will reverse any difference between the lifetime losses recognised previously and the 12 months losses showing it as income or what?
November 12, 2017 at 9:48 am #415344
P2-D2
Keymaster
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Hi,

Yes, you would just reverse out the original entry but I believe that there are specific criteria in the standard that need to be met if this is to be done.

Thanks
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