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hi,
could you please provide with reference to appropriate IAS for following case. if we have written off foreign currency loan and received partial payment how recovery process should be recorded? and if currency revaluation gain/loss should be recognized in PL?
thanks in advance
LusineHi Lusine,
This is not something that you will see on the FR syllabus and would be more suited to SBR as it falls under IAS 21.
Thanks
Hi Lusine,
I’m not a tutor, but I can add a few points from my side.
If the loan was written off because of the ECL assessment in the previous year, you can use as a guide IFRS 9.
(Paragraph 5.5.8 of IFRS 9 requires an entity to recognise in profit or loss, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised in accordance with this Standard.)It also depends on the fact was it Stage 3,2 or 1 (again if it was written-off due to the ECL assessment). If it was written off in full, that was probably stage 3, then if you received a partial payment, then the ECL should still be recognised, however, you can change the assessment and move to Stage 2.
Also, take a look at “IFRS Interpretations Committee Meeting” regarding IFRS 9
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