IFRS 7 - ECL disclosures

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LindsayM
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Joined: 20 Oct 2020, 14:32

IFRS 7 - ECL disclosures

Post by LindsayM »

Hi. At end of this year, the ECL allowance balance has decreased compared to last year. Thus there is a reversal of impairment in the PnL. It can be deduced that all the reversal happened in Stages 3. For presentation purposes, can we show a negative ECL balance in stages 3. Is it permissible under IFRS 7 or IFRS 9.
For eg:
Stage 1 - 100
Stage 2 - 50
Stage 3 - (10)

Thanks
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Marek Muc
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Re: IFRS 7 - ECL disclosures

Post by Marek Muc »

you mean closing balance (balance sheet) or P&L charge for the year?
LindsayM
Posts: 25
Joined: 20 Oct 2020, 14:32

Re: IFRS 7 - ECL disclosures

Post by LindsayM »

Sorry for the dalay...I mean closing balance in the balance sheet.
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Marek Muc
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Re: IFRS 7 - ECL disclosures

Post by Marek Muc »

it is unusual to have a closing debit balance in the balance sheet for ECL, but it can happen for purchased or originated credit-impaired assets
is this your case?

so it's OK in my opinion, but I would give a short footnote saying that this concerns purchased/ originated credit-impaired financial assets
LindsayM
Posts: 25
Joined: 20 Oct 2020, 14:32

Re: IFRS 7 - ECL disclosures

Post by LindsayM »

Hi. Yes they are POCI assets.
Thank you very much. You are a star!
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