Greetings,
I have one question on expected credit loss
Are entities required to perform assessment for expected credit losses on receivables that are not trade in nature. I mean they have no contractual terms of repayment when cash was advanced to the debtor.
Expected Credit Loss
Re: Expected Credit Loss
Like informal intercompany loan? I believe the answer is not technically as there are no contractual cash flows so there are none to miss but in practice it makes sense to, plus the question of what the substance of the balance is, eg is it in substance capital.
Re: Expected Credit Loss
Thank you for the reply. So unless there is no contractual cash flows of the repayment, there is no need to assess the expected credit loss?
Re: Expected Credit Loss
No, if it's a financial asset and it's debt - you need to recognise ECL
Re: Expected Credit Loss
Thank you. Very helpful.
Re: Expected Credit Loss
Hi,
Just a quick question, what's the meaning of this, anyway it will be eliminated at the group level?
THanks
Just a quick question, what's the meaning of this, anyway it will be eliminated at the group level?
THanks
Re: Expected Credit Loss
But in separate financial statements?