Collateral in measurement of expected credit losses

In IFRS 9 collateral is a relevant factor in the measurement of expected credit losses.

In IFRS 9 the estimate of expected cash shortfalls is reflected by the cash flows expected from collateral and other credit enhancements that are integral to the instrument’s contractual terms. The estimate of expected cash shortfalls on a collateralized financial instrument reflects:… Continue reading

Basic Financial Instruments 5

Disclosures

Disclosures for financial liabilities measured at fair value through profit or loss

The following disclosures make reference to disclosures for financial liabilities measured at fair value through profit or loss. Entities that have only basic financial instruments (and therefore do not apply Other Financial Instrument Issues ) will not have any financial liabilities measured at fair value through profit or loss and hence will not need to provide such disclosures.

Disclosure of accounting policies for financial instruments

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