AASB 9 Financial Instruments is live for 30 June balancers. Impairment of financial assets under the expected-credit-loss model is challenging as new concepts are introduced and more forward-looking information is used. The session will focus on key concepts, how to implement them, the judgements necessary and documentation needed to support them. The session will cover:
- What is the expected-credit-loss model and how does it differ from its loss-incurred counterpart? • Which financial instruments does it apply?
- When do I apply the new model?
- How do I apply it?
- What is a ‘significant increase’ in credit risk?
- What forward-looking information do I use?
- How do I apply the 30-day rebuttable presumption? and
- Benefits of the simplified approach.
